Kishore Biyani, Group CEO of Future Group believes that from an investment point of view business is all about scaling up and becoming profitable within a given time frame......
Kishore Biyani, Group CEO of Future Group believes that from an investment point of view business is all about scaling up and becoming profitable within a given time frame.
According to Biyani, there has to be balance while chasing margins or volumes. "You cannot look at business only in one axis it has to be in both axis. In the beginning it is brands and volumes which need to be built and then it is profitability which you drive."
Biyani who has redefined Indian retail and is known as Retail King of India for the last two decades now wants to be repositioned as a serial entrepreneur.
Below is the edited transcript of Biyani’s interview with CNBC-TV18.Also watch the accompanying video.
Q: There is lot of talk about you wanting to exit your non-core businesses. Why would somebody like you end up in a position where you actually build a business which then eventually becomes a non-core business for you?
A: That is a journey of the life and journey of balance sheet, so that is a journey of balance sheet. To put it in a perspective if you look at the balance sheet, if I can shave off Rs 1,000 crore of debt the interest will come down by Rs 150 crore. I will get a multiple of Rs 30 crores adding up USD 1 billion to my valuation and my investors want that.
Q: Are you now more investor driven?
A: We were always investor driven.
Q: When this debate about FDI in retail was happening you were one of the only guys who said we don’t need foreign retailers to come in an teach the retail business to us.
A: I never said it in that language.
Q: Maybe not in that language but you made it very clear that you weren’t open to the idea of allowing FDI into retail. At this point in time you seemed to have changed your mind, you are more open to the idea of FDI into retail – what has changed?
A: At that point we said that retail is the last leg of any economic activity and nobody in India should come easily and without any money. Our stand still remains the same.
Q: People with come with the money, people would have been willing to come with the money even then?
A: There were no conditions then, but there are conditions being put up of USD 100 million of investments.
Q: Do you think it’s good to have a conditional approval to allow foreign retailers into this country?
A: There should be money which should come into this country that is it.
Q: What is the one thing that you look at when you look at business from an investment point of view?
A: The ability to grow fast and become profitable within a particular time frame
Q: What do you chase more margins or volumes?
A: It is a balance you cannot look at business only in one axis it has to be in both axis.
Q: What is more important?
A: In the beginning it is brands and volumes which you built and then it’s the profitability which you drive.
Q: What about market share?
A: If you look at our fashion portfolio we are acquiring bands and accumulating lot of companies. Together we can create fashion holding company which can have more than 20-30 brands. We bring in abilities into the companies in which we have invested in to build more brands.
Q: Over the last two decades, Kishore Biyani is known as the Retail King of India – what would Kishore Biyani now want to be repositioned as?
A: A Serial Entrepreneur.
Kishore Biyani, Group CEO of Future Group believes that from an investment point of view business is all about scaling up and becoming profitable within a given time frame.
According to Biyani, there has to be balance while chasing margins or volumes. "You cannot look at business only in one axis it has to be in both axis. In the beginning it is brands and volumes which need to be built and then it is profitability which you drive."
Biyani who has redefined Indian retail and is known as Retail King of India for the last two decades now wants to be repositioned as a serial entrepreneur.
Below is the edited transcript of Biyani’s interview with CNBC-TV18.Also watch the accompanying video.
Q: There is lot of talk about you wanting to exit your non-core businesses. Why would somebody like you end up in a position where you actually build a business which then eventually becomes a non-core business for you?
A: That is a journey of the life and journey of balance sheet, so that is a journey of balance sheet. To put it in a perspective if you look at the balance sheet, if I can shave off Rs 1,000 crore of debt the interest will come down by Rs 150 crore. I will get a multiple of Rs 30 crores adding up USD 1 billion to my valuation and my investors want that.
Q: Are you now more investor driven?
A: We were always investor driven.
Q: When this debate about FDI in retail was happening you were one of the only guys who said we don’t need foreign retailers to come in an teach the retail business to us.
A: I never said it in that language.
Q: Maybe not in that language but you made it very clear that you weren’t open to the idea of allowing FDI into retail. At this point in time you seemed to have changed your mind, you are more open to the idea of FDI into retail – what has changed?
A: At that point we said that retail is the last leg of any economic activity and nobody in India should come easily and without any money. Our stand still remains the same.
Q: People with come with the money, people would have been willing to come with the money even then?
A: There were no conditions then, but there are conditions being put up of USD 100 million of investments.
Q: Do you think it’s good to have a conditional approval to allow foreign retailers into this country?
A: There should be money which should come into this country that is it.
Q: What is the one thing that you look at when you look at business from an investment point of view?
A: The ability to grow fast and become profitable within a particular time frame
Q: What do you chase more margins or volumes?
A: It is a balance you cannot look at business only in one axis it has to be in both axis.
Q: What is more important?
A: In the beginning it is brands and volumes which you built and then it’s the profitability which you drive.
Q: What about market share?
A: If you look at our fashion portfolio we are acquiring bands and accumulating lot of companies. Together we can create fashion holding company which can have more than 20-30 brands. We bring in abilities into the companies in which we have invested in to build more brands.
Q: Over the last two decades, Kishore Biyani is known as the Retail King of India – what would Kishore Biyani now want to be repositioned as?
A: A Serial Entrepreneur.
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