“Mitsui is exploring possibilities of investing into a venture with Future Group either though an existing company or in a separate venture,” one person said.
The Japanese conglomerate’s wholesale food company, Mitsui Foods Co, is a supplier of packaged foods, dairy products, livestock items, rice and cereals, ice-cream, instant foods and beverages, among other products.
“They are working on a similar business of fresh food supplies for 7-Eleven, FoodHall, Big Bazaar as well as other quick service restaurants,” the person said.
Mitsui and Future Group did not respond to ET’s emailed questionnaires till press time.
Tokyo-based Mitsui, which has businesses including iron and steel, infrastructure, IT and communications and food and retail, operates 7-Eleven stores in the Chinese city of Chongqing in a consortium along with 7-Eleven and a Chinese agribusiness company.
Biyani has started a company called Galaxy Cloud Kitchen, which will deliver meals to customers’ doorsteps for Rs 40. Cloud kitchen is a backend concept that involves preparing and delivering food to various locations without any dine-in facilities.
Mitsui could look at investing in Galaxy Cloud Kitchen or in a separate venture with Biyani, the person said.
The cloud kitchen will supply food items to upcoming 7-Eleven outlets in India, including meals for breakfast, lunch and dinner.
Biyani’s group is expected to roll out 7-Eleven-branded convenience stores in Mumbai early next year and the Future-Mitsui company plans to provide sandwiches, pizzas, bakery items, salads, cut-fruits and a raft of beverages including ice teas, coffee and juices to them, they said.
Organised retailers account for $25 billion of India’s annual $580 billion food and grocery market and the segment is expected to grow to $69 billion by 2024, when modern retailers take their total market share in the food and grocery market to 7% from 4% at present, according to Axis Capital.
Future Group, one of the largest retail enterprises in India with 1,400 outlets, signed a master-franchisee agreement earlier this year with 7-Eleven to open its eponymous convenience stores in India. Future plans to convert some of its stores, including Easyday shops, into 7-Eleven outlets.
7-Eleven is Japanese-owned and based in Texas. It is the world’s largest chain of convenience stores and operates 69,000 outlets in 17 countries, with about 11,800 of them in North America.