Brand Factory to invest Rs 500 cr by 2010

Brand Factory — the discount store format of the Future Group which runs retail business chains such as Central and Big Bazaar — is planning an expansion drive to set up 55 outlets in 40 cities in India by 2010.

The group launched its first Brand Factory store in Pune (its fourth) last week and plans to open one each in Hyderabad and Noida next week. It has three stores, one each in Bangalore, Hyderabad and Ahmedabad.

Vishnu Prasad, President and Chief Executive Officer, Central and Brand Factory business for Future Group said that the company is expected to invest about Rs 500 crore by 2010 for the 55 stores it plans by then.

Prasad said that the BF stores will offer 15 per cent to 25 per cent discount round the year on a wide range of national and international brands.Prasad said that the BF stores will provide an important link in shifting a customer from stitched to readymade to branded apparel. The only difference between what is offered in the Central or other formats of the company is the freshness of design, he said, adding that BF will not sell defective garments.

Sadashiv Nayak, head of Western market for the group, said that BF will target the young customers who want wear a brand but don’t want to spend big money for them. BF, with its discount appeal will give them the brand experience without any compromise on quality.

Nayak did not offer any projections of the sales revenue BF will record when it reaches the 55-outlet mark in 2010. He said that the business started only during October, 2006, and income projections have not been built so far. He, however, claimed that the customer response in the three stores opened so far has been “huge”.