Pantaloon to spin off Future Ventures

Pantaloon Retail decided on Wednesday to spin off its subsidiary, Future Ventures, as a separate company and raise Rs 2,000 crore (Rs 20 billion) by selling its equity through public and private placement.

Though the exact amount of stake dilution is not known, Pantaloon Retail's Managing Director Kishore Biyani said the company would divest more than 20 per cent shares.

Future Ventures will house the company's JVs and new ventures. The company would incubate new ideas and invest in new ventures and real estate projects, Biyani said. Though Biyani is heading the new company for now, the company is likely to have a new CEO in the next few months.

Meanwhile, riding on the increase in its sales from retail operations, the company posted a 17.72 per cent rise in its net profit at Rs 18.6 crore (Rs 186 million) for the quarter ended June 30, 2007, compared with Rs 15.8 crore (Rs 158 million) for the quarter ended June 30, 2006.

Its total sales went up 80.4 per cent to Rs 1,037.3 crore (Rs 10.37 billion) for the first quarter of 2006-07 compared with the same quarter of the previous financial year. The company also posted an increase of 79.44 per cent in its total income at Rs 1,037.4 crore (Rs 10.37 billion) compared with Rs 578.1 crore (Rs 5.78 billion) posted in the same quarter last year.

The company posted a net profit increase of 87.05 per cent for the year ended June 30, 2007, compared with Rs 64.1 crore (Rs 641 million) for the corresponding previous financial year.

The net sales also went up by 78.05 per cent at Rs 3,325.6 crore (Rs 33.25 billion) for the year ended June 30, 2007, compared with Rs 1,867.7 crore (Rs 18.67 billion) for the previous financial year.

The company's total income went up by 77.82 per cent at Rs 3,328.7 crore (Rs 33.28 billion) for the year ended June 30, 2007, compared with Rs 1,871.9 crore (Rs 18.71 billion) in the corresponding previous year.

We will focus on increasing margins in the next quarter by 5 to 7 per cent through restructuring our fashion business. Overall, we are looking at higher growth,'' Biyani said.