June 7: Future Group could soon be seen entering a new domain. The Kishore Biyani-led company is reportedly planning to offer doorstep delivery of milk and related products by making the best out of its retail outlet brand.
According to a report from The Economic Times, Future Group could soon announce its plan to enter the hyper-local milk delivery market, and the announcement could be made as early as in the coming weeks. Future Group is said to introduce its delivery service in all the metro cities in the initial stage. The delivery will include food items like milk, eggs and breads.
The initial phase will be analyzed to see how the model works, with the company also subsequently planning to offer delivery of other food items including vegetables, fruits, and grocery through the model.
Future Group will be using its retail outlet force that consists of Easyday, Nilgiri and Heritage to deliver the products. Biyani is expecting an additional revenue generation of Rs 20 lakh per store with the new delivery service
The model follows that of milk-delivery start-ups like Milk Basket and Supr Daily that have emerged successful in the segment. On an average, Indian households spend over Rs 1000 per month for the purchase of milk, bread and butter items.
Food delivery companies like Swiggy and BigBasket were also recently reported to be eyeing an entry into the segment through acquisitions. Amazon and Flipkart, who had already made the steps to food delivery, might also be keen to exploit the field. Online milk delivery is estimated to have an addressable market of $1.2 billion of which 8% is contributed by the online space.