Future Consumer Enterprise Limited (FCEL)

12 JULY 2014
FUTURE CONSUMER ENTERPRISE LIMITED
RS 9.79Company Report: India-Consumer Listed
www.indiabusinessreports.com 1
Basic Stock Info
Market Cap Rs 1564 crore
Listing BSE, NSE
Face Value Rs 6 (was Rs 10 at IPO)
IPO May 2011
IPO Price Rs 10
52 week high Rs 11.78
52 week high date 10-July-14
52 week low Rs 4.51
52 week low date 26-Nov-13
All time high Rs 11.88
All time high date 12-Nov-12
All time low Rs 4.51
All time low date 26-Nov-13
Shareholding Pattern
Mar-14 Mar-13
Promoters 41.1 39.1
FIIs 19.8 20.7
Public 39.1 40.2
% of Promoter Holding Pledged
31-Mar-14 71.1%
31-Dec-13 52.1%
31-Mar-13 52.1%
31-Mar-12 40.7%
Brief Financials
(Rs cr) FY10 FY11 FY12 FY13 FY14
Sales 157.8 547.2 858.3 959.3 822.6
EBITDA (excl OI) -23.6 14.9 19.4 -18.5 -85.6
PAT -21.0 -39.4 -65.4 -76.6 -15.3
EBITDA margin (%) -15.0% 2.7% 2.3% -1.9% -10.4%
Networth 504.5 726.9 1437.5 829.5 805.7
Debt 168.8 13 22.3 1.4 109.5
Net Fixed Assets 245.9 254.5 377.2
Investments 148.2 539.1 138.9
Net Current Assets 302.7 140.6 316.2
KEY POINTS
 The best case valuation of Future Consumer
Enterprises (FCEL) should be around Rs 1100 crore,
or about 30% less than the current market cap.
This implies a share price of ~Rs7.
 Aggregate EBITDA loss of Rs 140 crore over FY08-
14. No clarity on when would the company turn
EBITDA positive. Unsettled business model.
 On the positive side, the company had zero net
debt as on 31 March’14 (short term debt of Rs 109
crore, current investment of Rs 123 crore).
However, it has announced 4 investments since,
the era of zero net debt could be over by now.
 Sold Capital Food stake for Rs 180 crore in Dec’13.
While the sale gave positive returns, reason for
sale not clear.
 The drop in FY14 revenue is a result of the FY13
demerger. While FCEL added new businesses (KB’s,
Express retail) in FY13, it wasn’t enough to recoup
the topline. The demerger also took away the
profitable businesses, leaving FCEL will all loss
making businesses.
 Current business portfolio is around Rs 340 crore of
sales from standalone company, and Rs 480 crore
from subsidiaries.
 Since Apr’13, the company has made 4 major new
investment decisions: 100% of Future Agrovet, 35%
in Sarjena Foods, 74% in a mega food park project
and 50% in a JV in Sri Lanka.
 Not clear how an investment in an infrastructure
project like a food park is in synch with the
company’s business. More such parks planned.
 ACK Media is loss making non-core business
requiring continual support. FCEL had invested Rs
82 cr till Mar’13; put in a further Rs 9 cr in Dec’13.
 Acquisition of Express Retail appears another bad
investment. Closed almost half of its 65 stores.
 Santosh Desai holds 2,52,56,619 shares amounting
to 1.58% stake, of value Rs 24.75 crore at current
price

India-Consumer-Listed Future Consumer Enterprise 12 Jul’14
BUSINESS AT IPO
Was an investment company at IPO in 2011
14 Business Ventures, six of which were
subsidiaries
As on IPO date, FCEL (then called Future Ventures or FVL) was a NBFC
registered with the RBI, and in the business of making investments, which
it calls Business Ventures.
It had 14 Business Ventures, six of which were subsidiaries. Out of the 14
Business Ventures, FCEL had indirect shareholding in three of the Business
Ventures and one of the Subsidiaries is a step-down subsidiary. FCEL
intended to be a long-term owner, operator and/or partner of the
Business Ventures.
Business Venture Segment Stake Date acquired
1 AND Designs India Limited Fashion 22.86% 21.10.2009
2 Biba Apparels Private Limited Fashion 17.30% 14.03.2011
3 Holii Accessories Private Limited Fashion 50.00% 02.11.2009
4 Indus-League Clothing Limited Fashion 85.70% 30.01.2010
5 Celio Future Fashion Limited* Fashion 49.99% 30.01.2010
6 Lee Cooper (India) Limited Fashion 100.00% 30.01.2010
7 Turtle Limited* Fashion 26.00% 30.01.2010
8 Indus Tree Crafts Private Limited Home Products 52.53% 01.03.2010
9 Capital Foods Exportts Private Limited Food 40.81% 15.02.2010
10 Future Consumer Enterprises Limited FMCG 100.00% 02.08.2010
11 Future Consumer Products Limited FMCG 90.00% 29.06.2010
12 Aadhaar Retailing Limited Rural Distribution 70.00% 27.03.2008
13 Amar Chitra Katha Private Limited Media 12.79% 30.06.2011
14 SSIPL Retail Limited Footwear Distributor 6.57%
FCEL had entered into a Mentoring Services Agreement with Pantaloon
Retail (India) Limited to provide mentoring services to itself and/ or the
Business Ventures.
Additionally, it had entered into a Consulting and Advisory Services
Agreement with Future Capital Holdings Limited under which it would,
amongst other things, support resource mobilisation in investee
companies, advice on mergers and acquisitions and exit strategies and
provide research services in relation to Treasury Assets.
25% of advisory fee goes to Future Corporate Resources, rest goes to
Future Retail.
In addition to the above fee, FVL also pays Brand Royalty as per chart
shown.
These appear to go to Future Ideas Company Limited and Future Brands
Limited.

DEMERGER SCHEME IN NOV’12
Gave away fashion business to Future Fashion & Lifestyle
8 Business Ventures demerged out,
effective 1 Jan’13
Future Ventures (FVL) demerged out: Indus League, Lee Cooper, Celio,
Holii, Indus Tree and strategic investments in AND, Biba and Turtle into
Future Fashion. This was effective 1 Jan 13, or after 9 months of FY13.
We have attempted a rough calculation of the impact of demerger on the
P&L of FVL/FCEL.
The profitable business moved out. It
was also the larger business,
contributing >60% of FY12 revenue
The key majority owned businesses demerged out Indus League Clothing,
and its subsidiary Lee Cooper. For FY12, the cumulative turnover of these
businesses was ~Rs 540 crore, and EBITDA was Rs 46 crore.
The business which has continued had
revenue of ~Rs320 cr and EBITDA loss of
~26 crore in FY12. Since then, while
revenue has expanded sharply, so has
EBITDA loss
What the following table shows is – what would financials look like, if the
demerged business was excluded.
FY12 FY13
(Rs cr) Reported Less
Demerged
Reported Less
Demerged
Sales 858.3 328.3 959.3 535.3
EBITDA 19.4 -26.6 -18.5 -55.3
Some of the minority holdings like AND, and Biba were also demerged out;
however, these don’t impact the P&L.
The continuing revenue stream of the
current FCEL shows a steady 8-10%
EBITDA loss
The financials for FCEL’s business, if we strip out the demerged businesses
(certain approximations involved here), look like this:
(Rs cr) FY12 FY13 FY14
Sales 328.3 535.3 822.6
EBITDA -26.6 -55.3 -85.6
EBITDA Margin (%) -8.1% -10.3% -10.4%
This does give the impression that FCEL’s food and related businesses are
making a steady EBITDA loss of 8-10%. The sharp jump in revenue is not all
organic, new acquired businesses are a part of this, though we don’t know
by how much.
Statement at the time of demerger FVL will be a company focussed on the Food & FMCG sector with a
portfolio of FMCG brands --
 Its own rural distribution chain, Aadhar and convenience store
chains, KB’s Fair Price & Big Apple.
 The FMCG brands portfolio includes Fresh & Pure, Premium
Harvest, Tasty Treat, Clean Mate, Care Mate, Poonya, Ekta,
Sangi’s Kitchen along with Smith & Jones and Chings Secret that
are owned through a 43.7% stake in Capital Foods.
 It also owns an upcoming Food Park being set up for sourcing and
processing of Food & FMCG products.
 FVIL will also reorganise some of its businesses held in
subsidiaries to emerge as an operating company and will continue
to look for investment opportunities for its growth

BUSINESS PORTFOLIO POST DEMERGER
Operating business + subsidiaries
Retailing, Food and FMCG are the focus
areas, ACK is an oddball
At the time of the de-merger, there are about 6 key Business Ventures left:
Aadhar, Future Consumer Products, ACK, Star and Sitara Wellness, Express
Retail and Capital Foods.
Subsidiaries as on Mar’13 Investment Stake
(post de-merger) Mar-12 Mar-13 Mar-12 Mar-13
Aadhaar Retailing Limited 107 116 70.00% 70.00%
Future Consumer Enterprises Limited 160 2 100% 100%
Future Consumer Products Limited 20 20 90% 90%
Amar Chitra Katha Private Limited 82 82 68.12% 68.12%
Star and Sitara Wellness Private Limited - 18 100.00% 100.00%
Express Retail Services Private Limited - 62 100.00% 100.00%
Capital Foods Exportts Private Limited* 81 81 43.76% 43.50%
Capital Foods Exportts Private Limited 25# 25#
Total (Rs Crore) 475 405
*Capital Foods was not a subsidiary #zero coupon convertible debenture
Stand alone revenues start from FY13 From the above lot, 2 companies - Future Consumer Enterprises Limited
and Future Consumer Products Limited – have moved up to figure in stand
along revenues. KB’s Fair Price was also acquired in FY13 and it appears is
part of the parent standalone numbers
(Rs crore)
The demerged businesses would have continued to 3 quarters of FY13,
which explains 70-80% of FY13’s ‘sale from subsidiaries’.
Express Retail added to FY13
consolidated numbers, Future Agrovet
partly came in FY14
Similarly consolidated revenue has grown through addition of Express
Retail in FY13 and Future Agrovet in Nov’13 (which should have
contributed to Q4 of FY14)
0 0
303.7
342.8
FY11 FY12 FY13 FY14
Net Sales - Standalone
547.2
858.3
655.6
479.8
FY11 FY12 FY13 FY14
Sales from Subsidiaries

INVESTMENT ACTIVITY SINCE MAR’13
FCEL has been quite active in FY14 and
ytd, making 6 investment
announcements
FCEL announced 6 investments since Mar’13. Of this, KFC Shoemaker was
supposed to be passed on to Future Fashion and Lifestyle.
FCEL continues to support loss making ACK.
Announced a tie up with Sunkist, a
bevearages brand from USA in Dec’13.
Expects a revenue of Rs 200 crore in 2
years
Besides the above equity investments, FCEL signed a long-term licensing
agreement with Sunkist. Sunkist is a citrus marketing co-operative and a
leading licensor based in California with presence across 86 countries.
In India, the company is expected to launch a range of sparkling
beverages, fruit juices and drinks which would be priced at a premium
compared with existing brands such as Fanta, Miranda or Tropicana. “We
expect the Sunkist brand to record Rs 200 crore sales turnover by the
second year of launch. It would be based on a royalty payment,” added
Biyani. Sunskist will be sold through the general trade and Future Group-
owned outlets such as Food Bazaar and Aadhar.
SALE OF CAPITAL FOODS
Not clear why the sale was done, given
that FCEL wanted to focus on foods
Given that FCEL’s focus was supposed to be foods, the sale of Capital
Foods comes as a surprise. One explanation could be that FCEL does not
want to hold minority stakes in companies, in line with its focus of being an
operating company. (However, 35% stake buy in Sarjena Foods belies this)
Oddly, in FY12, FVL invested Rs 36 crore
in Capital Food or additional 2.95%
stake, implying valuation of Rs 1220
crore!
FCEL’s total investment in CFL amounted to Rs 106 crore for its 44.5%
stake.
 The initial investment was made in 2006, or about 7 years ago. In
2006, Future Ventures had pumped in Rs 13 crore for a minority
33% stake in Capital Foods. So the valuation at that time was Rs
39 crore.
 The FY12 Annual report of FCEL says: During the year, your
Company has raised its stake in Capital Foods Exportts Private
Limited from 40.81% to 43.76% by additionally investing ` 36
crore. This suggests valuation of Rs 1220 crore!
FCEL exited Capital Foods in Dec’13 at
valuation of Rs 400 crore
FCEL sold its 44.5 per cent stake for Rs 180 crore in Capital Foods in
Dec’13. The stake was sold to a European family office Artal Investments.
Amount Stake When
Integrated Food Park Private Limited 73.89% 19-May-14
Sarjena Foods Private Limited 35.00% 19-Jun-14
JV in Sri Lanka 50.01% 19-May-14
Amar Chitra Katha Private Limited 9.14 5.87% 10-Dec-13
Future Agrovet 100.00% 25-Nov-13
KFC Shoemaker Private Limited 33.30% 26-Apr-13

This suggests Capital Foods was valued at ~Rs 400 crore.
At 2.5x sales, did FCEL sell its stake
cheap?
Capital Foods FY12 FY13
Sales 123.2 145.0
PBT 14.6 16.0
Equity Invested 106 106
For FY13, Capital Foods reported a consolidated turnover of Rs 145 crore
and an operating profit/EBITDA of Rs 16 crore, showing growth of 17% and
8% respectively over the previous year.
Given the above numbers, it seems Capital Foods was valued at around
2.5x sales, assuming 20% revenue growth and therefore revenue of ~Rs
160crore by the time the stake was sold.
Capital Foods, would continue to hold 26 per cent stake in the Future
Group-owned food park at Tumkur near Bangalore.

FCEL VALUATION
A very rough sum of parts calculation
Here we have tried to put together available financial information for
various businesses, and then give a valuation number to it.
An upper end valuation of FCEL should
be around Rs 1100 crore; lower end
could be ~Rs 900 crore
Entity/Segment Value (Rs Cr) Rationale
Stand alone 680 2x sales
Aadhaar 70 0.5x sales
ERSPL 50 0.5x sales
ACK 55 1x sales
Others 250
Estimated Fair Value 1105
Market Cap 1564
Difference -29.3%
This we believe is the upper end valuation. A more conservative number
could be Rs 200 crore less, the drop coming largely from the standalone
entity.
The sections below give an explanation of the various segments.
Stand alone business
Standalone entity started showing
operating revenue from FY13. These are
revenues from FCEL, earlier a subsidiary
of FVL. KB’ Fair Price also appears to be
part of the parent company
Till FY12, the stand alone business was zero. In FY 13 and FY14, the
standalone entity also shows operating revenue.
From what we can figure out, the stand alone revenue is the revenue of
two subsidiaries of erstwhile FVL: Future Consumer Enterprises Limited
and Future Consumer Products, which has rights to the Sach brand..
FCEL was earlier a 100% subsidiary of FVL, in which the investment stood
at Rs 160 crore as on Mar’12. Since this business was amalgamated in the
main entity in FY13, which was renamed FCEL itself, FY13 AR shows only a
Rs 2 crore investment in FCEL. Moreover, the subsidiary FCEL was renamed
Future Food and Products Limited, allowing the listed parent to carry the
FCEL name.
FCEL owns exclusive right to sell and distribute various food and FMCG
products under the various brands Tasty Treat, Fresh & Pure, Clean Mate,
Care Mate, Premium Harvest, SACH, Disney, Ektaa.
50% of Big Apple stores closed down
within 12 months
While it is not clearly mentioned anywhere, we think it also operates
convenience stores under the brand KB's Fair Price. During FY13, the
Company acquired convenience store chain KB’s Fair Price from Future
Value Retail Limited. It had 100 stores in Sep’12, when ERPSL was
acquired. ERPSL had 65 stores at that point.

As on Mar’13, the store count of KB’s Fair Price was 193. It is not clear if
this included Big Apple stores, or this was just KB’s.
As on Dec’13, there were 176 KB’s Fair price stores. Kishore Biyani, in an
interview in Dec’13 said “In the last six months, we have also closed down
30-35 unprofitable stores. These were mainly the stores that were
acquired from Big Apple.”
This implies around 50% of Big Apple stores were closed down.
Valuing the stand alone business
Valuation
benchmarks
EV/
Sales
EV/
EBITDA
Personal care 3-5x 25x
Food 2-3x 20x
Retail 0.5-1x 10x
Financials of the standalone entity not reported properly as part of
quarterly result declaration. FCEL has reported only sales and EBITDA for
FY14. Full stand alone results are not there.
Standalone FY13 FY14
Sales 303.7 342.8
EBITDA 6.7 30.0*
Capital Employed 421.5 n.a
The consolidated numbers have reported other income of Rs 114 crore.
This should come in standalone also. If we exclude this, EBITDA could well
be ~Rs -70 crore.
Valuing at Rs 680 crore based on 2x sales Looking at valuation of food companies, we believe the best case scenario
can be 2x sales which lead to a EV (=Market cap, since debt is zero) of Rs
680 crore.
A hardnosed approach can mean lower valuation than this (1.5x sales = Rs
500 crore), based on:
o FY14 EBITDA (excl other income) is most likely a negative number
(~Rs - 70 crore). So the operations may not be profitable. Where
has this loss come from, given that FY13 EBITDA was positive? We
think the contributor could be KB’s Fair Price.
o It is not clear how much of the revenue is brands, and how much
is retail revenue from KB’s Fair Price.
o The brands are instore brands, there is zero customer recall of
FCEL’s brands. For FY13, advertising and promotion expense was
Rs 3.1crore, or just under 1% of sales. We suspect this may more
free samples. To give valuations close to a branded food company
like say a Britannia is a bit of a stretch.
Aadhaar Wholesale Trading and Distribution Limited
From a retailing business, to wholesale
(cash and carry). CoCo retail outlets
reduced from 35 in FY12 to 16 by Mar’13
This company was called Aadhaar Retailing till FY13, it was renamed on 4
April 2013. It was acquired from Godrej Agrovet in 2008 (which holds
30%), where it was a rural retailing business. As on Mar’12, it Aadhaar
operated 35 other retail outlets in Punjab, Haryana and Gujarat.
In FY12, Aadhaar changed focus to wholesale trading. The first wholesale
market came up in Kalol, Gujarat in FY12.
Each CNC point to cater to up to 100
franchisee retail points. There were only
2 CNCs as on Mar’13, catering to 30
franchisee outlets
The FY13 annual report says: The Company is focusing on the two regions
with high rural income, Gujarat and Punjab& Haryana, for the growth of
this network. By March’13, there was addition of only one more CNC store,
this was one in Barnala, Punjab. These 10,000 square feet stores offer
around 1000 SKUs in staples, food and grocery, consumer goods and
100
193
176
Sep'12 Mar'13 Dec'13
KB+Big Apple Store Count

general merchandise and serve small rural retailers in the 50 kilometers
radius. These 2 CNCs catered to 30 Aadhaar franchisee owners.
The company owned retail stores seemed to have reduced to 16 by
March’13.
Valuing Aadhaar
Aadhaar’s best case value can be Rs 100
crore, at 0.5x sales. FCEL’s stake is 70%
After having been in the Future fold since 2008, Aadhaar continues to
struggle.
Aadhaar FY12 FY13
Sales 94 138
PBT -25 -22
The business can at best get an EV/Sales of 0.5x. Assuming current revenue
run rate of Rs 200cr/annum, that gives us a EV of Rs 100 crore. (this is also
the market value, assuming zero debt). FCEL’s stake is 70%, hence value of
its stake comes to Rs 70 crore.
Express Retail Service Pvt Ltd (Big Apple)
ERPSL was acquired 100% in Sep’12 for Rs 62 crore. ERSPL was selling
groceries and food products through general convenience store under the
brand 'Big Apple' in the National Capital Region for the last six years. Big
Apple had 65 outlets in Sep’12.
According to an interview given by Kishore Biyani in Dec’13, around 50% of
the stores of Big Apple were closed down. Its financials as on Mar’13 are as
follows:
Valuing ERSPL
At 0.5x sales, value comes to Rs 50 crore
ERSPL FY12 FY13
Sales 113.8
PBT -15.2
Equity Invested 62
Reserves and Surplus figure for ERSPL was Rs – 87 crore on Mar’13,
indicating it has been making losses for several years.
We can give it a value of 0.5x sales. Taking FY14 sales as Rs 100 crore, the
value comes to Rs 50 crore. (if half the stores were closed, actual sales
could be down even more).
Amar Chitra Katha
FCEL has 74% stake in ACK. As on Mar’13, FCEL had an investment of Rs 82
crore for 68.12% stake. This implies an average valuation of Rs 122 crore
for its stake. In Dec’13, FCEL put in another Rs 9.14 crore for a further
5.87% stake. This implies a post money valuation of Rs 155 crore.
Valuing ACK
We believe this is a lemon, it will continue to suck in money, and struggle
to justify its valuation. The historical brands of ACK have little value, since

ACK will continue to lose money. 1x
sales or Rs 75 crore is a generous
valuation for ACK
the content is generic, and consumers have moved away. Its distribution
business IBH has always lost money, and there is clear path to turnaround.
ACK FY12 FY13
Sales 69.7 76.8
PBT -8.6 -11.9
Giving it a value of 1x sales we get a valuation of Rs 75 crore for the
company. Since FCEL owns 74% of ACK, the value of its stake becomes Rs
55 crore, implying value destruction here.
Other investments – at Cost
FCEL has several other investments. Of these, Star and Sitara Wellness was
there in FY13. FCEL’s stake is 100% here for Rs 18 crore.
After Mar’13, the company has made several deals.
Valuing other businesses at cost, or
around Rs 250 crore
These are
Amount Stake When
Integrated Food Park Pvt Ltd 73.89% 19-May-14
Sarjena Foods Pvt Ltd 35.00% 19-Jun-14
JV in Sri Lanka 50.01% 19-May-14
Amar Chitra Katha Pvt Ltd 9.14 5.87% 10-Dec-13
Future Agrovet 100.00% 25-Nov-13
KFC Shoemaker Pvt Ltd 33.30% 26-Apr-13
Deal values here were not revealed. We believe these can be at best
valued at cost. As on 31 march 2013, cash and cash equivalent appeared
to be ~Rs 250 crore. Assuming this was the cash deployed to make these
investments, that’s the value we can place on these businesses.
INFO ON LATEST INVESTMENTS
Future Agrovet
FCEL acquired this company from Future Retail which held 96% in this
company.
FAL is engaged in procuring, processing and supplying agricultural
commodities in loose and packaged form under various private brands in
addition to dealing to other branded/ non-branded products. It supplies to
various formats such as Food Bazaar, KBs Fair Price, Big Apple, Aadhaar,
etc., besides other institutional and general trade clientele. It has about 48
distribution centres at 32 locations across 16 states.
The sales turnover of FAL, for the financial year 2012-13 was Rs 1,014.67
crore with Ebidta of Rs 15.25 crore.
FAL comes with a revenue > Rs 1000
crore, but makes negligible profit on it.
FAL appears to be an internal servicing arm of Future Retail, now owned by
FCEL. While it appears large in revenue size, its EBITDA margin is miniscule
at 1.5%. This is typical of Future Group, where its service arms like Future
Logistics, while made into independent companies, supply almost at cost
to Future Group.

Integrated Food Park Pvt Ltd
Rs 144 crore project, Rs 50 crore
government grant
This is over a 100 acre plot near Bangalore. The project cost appears to Rs
144 crore, according to a Mofpi document. Like other mega food park
projects, there is a government grant of Rs 50 crore. Future Group thus
needs to organise Rs 94 crore. In this park, Capital Foods will hold a stake
of 26%, hence FCEL’s commitment will less to that extent.
A media article in July’14 quoted Biyani saying Future Group has invested
Rs 300 crore in this project.
We are not clear why FCEL should be getting into this project, perhaps the
government grant etc make it attractive as a supply chain base.
More food park investments coming?
Reports of FCEL’s interest in a Rs 600
crore project in West Bengal
There are several media reports of Future Group’s food park plans in other
states. For ex, an article of Jun’14 says: Future Group intends to set up a
food processing park in Kharagpur, West Bengal, which will entail an
investment of Rs 600 crore. The food park will be spread across 60 acre and
will come up at Vidyasagar Industrial Park, in Kharagpur.
About Rs 150 crore will be invested by the Future group and the company
will mobilise the balance Rs 450 crore from other investors. The group will
build collection points across the state to collect farm produce for its
proposed unit.

FCEL’S POSITION WITHIN THE FUTURE GROUP
The group has 3 listed companies now, FCEL is the smallest
FCEL is the smallest of the 3, and the
most unstable business model
After the last round of reorganisation in FY13, there are now 3 listed
companies from Future Group
1. Future Retail
2. Future Lifestyle and Fashion
3. FCEL
(Rs crore)
FCEL had zero net debt till Mar’14. We
think this will change in FY15
On the positive side, FCEL is zero debt, and with cash on the balance sheet
of Rs 138 crore and debt of Rs 109 crore as on 31 Mar’14. However, given
the aggressive investment streak to continue to show combined with cash
losses, we think the period of zero net debt is behind FCEL.
(Rs cr) Sales EBITDA Dep Int Other Inc PBT PAT Networth Total Debt
Future Retail 13654.8 943.6 451.9 726.0 307.5 99.2 94.8 3261.1 4309.8
Future Lifestyle Fashion 2744.0 256.3 385.2 163.0 331.7 34.2 23.3 1291.3 1264
Future Consumer Enterprise 822.6 -85.6 39.3 5.2 114.2 -15.9 -15.3 805.7 109.5
Market Cap EV P/EEV/EBITDA EV/Sales D/E
Future Retail 3069 7378.8 32.4 7.8 0.5 1.3
Future Lifestyle Fashion 1619 2883.0 69.5 11.2 1.1 1.0
Future Consumer Enterprise 1566 1675.5 2.0 0.1

FINANCIAL DETAILS
Consolidated P&L
FY10 FY11 FY12 FY13 FY14
Net Sales 157.8 547.2 858.3 959.3 822.6
Material Cost 116 357.7 588.7 675.2 720.1
Gross Profit 41.8 189.5 269.6 284.1 102.5
Gross Margin 26.5% 34.6% 31.4% 29.6% 12.5%
EBIDT (Excl OI) -23.6 14.9 19.4 -18.5 -85.6
EBIDT Margin -15.0% 2.7% 2.3% -1.9% -10.4%
Other Income 23.6 2.1 2.2 0.9 114.2
Operating Profit -0.1 17 21.6 -17.6 28.6
Interest 10.7 23.9 21.9 16.9 5.2
Depreciation 8.6 25.3 23 37.3 39.3
PBT before Exceptional
Items -19.4 -32.2 -23.4 -71.7 -15.9
Exceptional Income /
Expenses 0 -4.5 -33.2 0 0
Profit Before Tax -19.4 -36.7 -56.6 -71.7 -15.9
Provision for Tax 1.6 2.7 8.8 4.8 0
PAT -21 -39.4 -65.4 -76.6 -15.3
Consolidated Balance Sheet
FY11 FY12 FY13 FY14
Share Capital 826.2 1576.2 945.7 958.8
Total Reserve -99.4 -138.7 -129.3 -153.1
Shareholder's Funds 726.9 1437.5 829.5 805.7
Total Debts 13.0 22.3 1.4 109.5
Total Liabilities 774.6 1497.8 851.8 931.5
Tangible Assets
Gross 102.9 115.2 87.4 n.a
Net 72.5 76.5 66.1 n.a
Intangible Assets
Gross 201.2 222.7 351.6 n.a
Net 173.4 178.0 286.3 n.a
Investments 148.2 539.1 234.4 138.9
Inventories 121.3 158.5 58.9 104.5
Sundry Debtors (Debotrs) 186.8 209.0 28.5 109.5
Cash and Bank 7.3 25.4 9.0 11.0
Other Current Assets 0.4 6.7 3.3 7.5
Loans and Advances 69.2 236.4 159.4 207.5
Total Current Assets 384.9 636.0 259.1 440.0

Less : Current Liabilities and Provisions
Current Liabilities 319.4 327.3 115.3 110.0
Provisions 3.5 6.1 3.2 13.8
Total Current Liabilities 322.9 333.3 118.5 123.8
Net Current Assets 62.0 302.7 140.6 316.2
Total Assets 774.6 1497.8 851.8 931.5

KEY ANNOUNCEMENTS
19 Jun 14 Making investment in Sarjena Foods Private Limited, by way of
acquisition of 35% stake in the Company, Sarjena Foods Private Limited is
engaged in the business of manufacturing and distribution of branded
bakery products under the name and style ‘Baker Street’.
19 May 14 Future Consumer Enterprise Ltd has informed BSE that the Committee of
Directors of the Company has at their meeting held on May 19, 2014, inter
alia, considered/ approved acquiring 50.01% in a Joint Venture for setting
up facility to manufacture Oats and other breakfast cereals in Sri Lanka.
Investment in Integrated Food Park Private Limited for acquisition of
73.89% stake in the Company, which is setting up a Food Park admeasuring
about 110 acres at Tumkur, Karnataka.
9 Dec 13 Future Consumer Enterprise Ltd has informed BSE that the Company has
entered into definitive arrangement to sell its entire investment in Capital
Foods Private Limited (earlier known as Capital Foods Exportts Private
Limited) on terms and conditions mentioned thereunder.
24 Sep 13 Future Ventures India Ltd has informed BSE that the Members of the
Company have at the 17th Annual General Meeting held on September 23,
2013, subject to such compliances as may be required, approved with
requisite majority, change in name of the Company from "Future
Ventures India Limited" to "Future Consumer Enterprises Limited" or
such other name that may be allowed by the Registrar of Companies,
Maharashtra, Mumbai, in terms of the resolution passed thereat.
30 May 13
In view of the Composite Scheme of Arrangement and Amalgamation
coming into effect pursuant to the re-structuring of the business of the
Company, to intimate Reserve Bank of India about the same and
consequently to comply with the process of de-registration as a Non-
Banking Financial Company in the manner as may be required.
4 Apr 13 Future Ventures India Ltd has informed BSE that name of Company’s
subsidiary-Aadhaar Retailing Limited has been changed to 'Aadhaar
Wholesale Trading and Distribution Limited’ vide fresh certificate of
incorporation issued by the Registrar of Companies, Mumbai dated April
03, 2013.

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