"We will be investing Rs 400 crore through strategic investors or private equity," Future Group's CEO Kishore Biyani told PTI.

The group plans to increase its two million sq ft of warehousing space to five million sq ft by 2010, besides acquiring a fleet of trucks for inter-city and intra-city movement of goods.

"We are planning to have around 1,400 specially designed own fleet for the transportation of goods of which 800 trucks would be for intra-city movement," he said.

To start with, the company will operate intra-city fleet in eight cities -- Mumbai, Delhi, Chennai, Hyderabad, Bangalore, Kolkata, Ahmedabad and Pune -- he said, adding that the larger inter-city trucks will be used to cart goods procured from suppliers from Tiruppur and the likes to these eight cities.

The fleet will be specially designed for carrying garments in hangers and transporting furniture and other articles requiring careful handling, Biyani said.

On upgrading technology for the retail business, Biyani said that Wipro [Get Quote] and Cisco are developing the Radio Frequency Identification Device (RFID) technology for the group.

"We are planning to develop the RFID technology according to our requirements. Wipro and Cisco are developing it for us," he added.

The logistics business would be conducted under the aegis of Future Logistics Solutions Limited (FLSL) and the company is targeting a topline of around Rs 800 crore (Rs 8 billion) by 2010.

FLSL, plans to operate about seven new mega-merchandising hubs ranging from 70,000-100,000 sq ft and 30 smaller warehouses in cities nation-wide over the next three years. It would offer its services to non-group companies as well.

FLSL is in talks with leading companies, especially in the apparel sector, for its services. Currently, the company is identifying and evaluating sites and requirements for its hubs and it is understood that its first mega hub will be completed in early-2009 in the western region.

FLSL's strategy seems to be to focus on the consumer logistics segment dealing in products related to foods, fashion, general merchandise and home solutions. The company expecting that by 2010-11, around 50 per cent of its revenues to emanate from outside the group.