Fung Capital is private equity arm of one of the world’s largest supply chain and distribution companies in Hong Kong. The Future group is promoted by Kishore Biyani. Other companies which are promoted by Kishore Biyani are Future Retail Limited, Future Lifestyle Fashion Limited and Future consumer Limited.
Initially, Future Supply Chain Solution was established to provide the supply chain and logistics solutions to the group companies. But later on, the customer base of the company was diversified across various sectors outside the group companies.
Future Supply Chain Solution offers automated and IT-enabled warehousing, distribution and other logistics solutions to the corporates in retail, food and beverage, FMCG, fashion and apparel, automotive & engineering, electronics and technology, home and furniture, e-commerce, and healthcare, domain.
Pan India distribution network, warehousing structure, hub-and-spoke transportation model, and automated technology system give a competitive advantage to the company. The company comprehensively cover the supply chain needs of their customers and optimize the performance, efficiency, and cost of their supply chain needs.
Business description - Future Supply Chain is one of India’s largest organised third-party logistics service operators, according to the A&M Report. It offers automated and IT-enabled warehousing, distribution and other logistics solutions to a wide range of customers. The company’s service offerings, warehousing infrastructure, pan-India distribution network, “hub-and-spoke” transportation model and automated technology systems support its competitive market position. Its customers operate in various sectors across India, including retail, fashion and apparel, automotive and engineering, food and beverage, fast-moving consumer goods (“FMCG”), e-commerce, healthcare, electronics and technology, home and furniture and ATMs. The company offers its customers services in three key areas:
- Contract Logistics: warehousing, distribution and other value-added services;
- Express Logistics: point-to-point, less-than truck-load, time-definite transportation services; and
- Temperature-Controlled Logistics: cold-chain warehousing, transportation solutions and distribution of perishable products.
Promoters of Future Supply Chain - Future Enterprises Limited
Future Supply Chain Solution Ltd. is coming with the maiden secondary IPO by an offer for sale from existing stakeholders.
It will provide listing gains and partial exit. Future Supply Chain Solution is offering 9,784,570 shares INR 10 face value. The price band of the listing is decided INR 660-664. This issue will fetch INR 645.78 to INR 649.7 crore according to the lower and upper price band of the issues.
The Future Supply Chain Solution IPO will open on 6th December 2017 and close on 8th December 2017. The lot size is 22 shares so you have to buy at least 22 shares or in the multiple of 22.
Edelweiss Financial, Nomura Financial Advisory & Securities (India) Pvt. Ltd., CLSA India Pvt. Ltd., IIFL Holdings Ltd., IDFC Bank Ltd., Link Intime India Pvt. Ltd. and Yes Securities (India) Ltd. are managing the issue.
Review: Being a logistics company, it will be benefited from GST &
Infra status to logistic sector. Investors may apply for medium to long term investment.
| Future Supply Chain IPO details | |
| Subscription Dates | 6 - 8 December 2017 |
| Price Band | INR660 - 664 per share |
| Fresh issue | Nil |
| Offer For Sale | 9,784,570 shares (INR645.78 - 649.70 crore) |
| Total IPO size | 9,784,570 shares (INR645.78 - 649.70 crore) |
| Minimum bid (lot size) | 22 shares |
| Face Value | INR10 per share |
| Retail Allocation | 35% |
| Listing On | NSE, BSE |
Logistics is the backbone of the economy, provides an efficient and cost-effective flow of good to different sectors. The logistics and supply chain industry in India is evolving at a rapid pace. Technology and infrastructure play an important role to reduce the logistic cost and providing effective services.
Future Supply Chain Solution Ltd. is the key player in the logistic and supply chain management industry which has adopted latest technology and taking the first mover advantage in terms of technological advancement. The company is far ahead of its competitors. Some of the strengths of the Future Supply Chain Solution Ltd. are: Technology and Automation :The adoption of technology and automated process placed the company at an advantageous condition within the supply chain management industry in India. The company has invested to implement the automated process and technology to increase the operating efficiency and capacity. This allows improving the profitability and customer satisfaction. Distribution Network:Future Supply Chain Solution Ltd. is one of the largest service providers in the supply chain industry. The company has an extensive network of strategically located facilities which includes 46 distribution centers including 4 temperature controlled distribution centers. The company has a pan India supply chain network by covering 11,228 pin code across 2 states and 5 union territories. The company lease most of the locations and delivery vehicles which enable the company to scale the operation quickly according to industry condition and customer demand. Comprehensive solutions:The supply chain solution of the Future Supply Chain Solution covers a wide range of third-party logistics services such as express logistic, contract logistics, and temperature controlled logistic. The company also provide end to end customized logistics and supply chain solutions according to the customer requirement. Infrastructure:Future Supply Chain Solution has a robust infrastructure that can tolerate extreme temperature, preserve customer inventory and maintain the quality working conditions. The temperature controlled warehousing facilities maintain the perishable goods in the frozen, chilled and ambient environment.The scale of operations, advanced technology, reliability, and continuous improvement differentiate the company from competitors. The company has a positive future outlook and have a scope of handsome growth in the long term as well as for short-term quick profits and exits. Logistic in India is around two times less efficient than USA and China so there is a huge scope for the technologically advanced company like Future Supply Chain Solution in India. Next Read : 50 Financial mistakes and illusions
Previous read : Thumb rules of Financial Planning
|
No comments:
Post a Comment