Indian retail and fashion major Future Group has made a joint business plan with Fonterra and is planning to launch products, Kishore Biyani, Founder and CEO of Future Group, has said.

“We have worked a lot before the launch. Our joint venture was signed probably a year ago. We have been working one year prior to that on understanding the markets. So we have made a joint business plan. Based on the products which we are going to launch as per schedule, we think over a period of next five-six years, it is looking like Rs 5,000-6,000 crore business for us,” he said.

In terms of revenue sharing agreement between Future and Fonterra with regards to product line, he added, “It is a JV in which we are investing 50 percent and Fonterra is investing 50 percent. They are using our supply chain facilities or they are directly in touch to look at what they want to work. So all companies are independent but as a group we are working together to make this brand successful.”

Regarding distribution, Biyani said, “Today the product is being launched in general trade also and we believe we are one of their customers not the only customer. I believe they have picked up orders from other modern retailers also.”

“Our ambition is that 60-70 percent of what we sell has to be our own brands. In food and grocery side, 8-10 percent of sales come out of dairy products. For us, it is very important to be in this category. We believe Fonterra probably is one of the best partners to build this product line. We understand India and its consumers and they understand the category, they understand the dairy space and I think Fonterra is a very innovative company. With our insights if we can create products for the newer generation in the way they want it, the way they like it with probably highest standards of quality and nutrition, I believe there is no reason it should not work,” he observed.