NTUC FairPrice officially launched its charity arm on Monday with an initial fund of $50 million over the next 10 years.

NTUC FairPrice Foundation will focus on three thrusts - to help the poor and needy, to help in nation building and community bonding as well as to advance the welfare of workers.

The launch of the foundation came on the back of a record revenue of $1.6 billion in the last financial year, with a net profit of $100 million.

Speaking at Monday's launch, NTUC Secretary-General Lim Swee cautioned that there is no guarantee that NTUC FairPrice will remain profitable.

'Yet at the same time NTUC FairPrice today is prepared to make that commitment...come what may NTUC FairPrice is doing whatever they can to remain competitive to remain profitable because the more profitable NTUC FairPrice is, the more it can generate the resources to do more good for the society,' Mr Lim said.

Last year, NTUC FairPrice gave more than $2 million to various community projects and charity organisations.

To kick things off, NTUC FairPrice Foundation presented $1 million in donation to four beneficiaries on Monday - NTUC Childcare Bright Horizons Fund, Food From the Heart, Community Chest and the Eldercare Trust.