Future Group is considering spinning off furniture retail unit HomeTown to merge it with online retailer FabFurnish and create a separate listed entity with target revenue of Rs 1,000 crore by the end of the next financial year.
HomeTown will be the biggest vendor on FabFurnish, which Future Group bought last month for about Rs 20 crore from German incubator Rocket Internet. Future Group will relaunch Fab-Furnish on Thursday.
"Our aim is to create some value in this business. With FabFurnish, we will be creating the largest home furnishing and decor business in the country." HomeTown has 42 stores at present and plans to add eight by end of the year. The company said the average ticket size at HomeTown is about Rs 44,000, which is not easily matched at online portals.
Separately, Sweden's Ikea, the world's largest furniture retailing chain, will open its first store in India early next year in Hyderabad.
In October, Japanese housing and building materials trading firm Sumitomo Forestry bought a 26% stake in Indian modular furniture manufacturer Spacewood for about $14 million (Rs 91 crore), making it the first foreign direct investment in a furniture business in the country.