Mukesh Ambani’s Reliance Industries on Saturday announced the acquisition of the retail, wholesale, logistics and warehousing businesses of Kishore Biyani’s Future Group for Rs 24,713 crore.
The acquisition was done through the company’s subsidiary Reliance Retail Ventures.
Reliance Retail will now have access to close to 1,800 outlets of Future Group’s Big Bazaar, Easyday, Central, and Foodhall stores, which are spread across 420 cities in India.
What is Reliance Retail Future Group Deal?
In a late night notification to the stock exchange on Saturday
“Reliance Retail Ventures Ltd (RRVL), subsidiary of Reliance Industries Ltd will acquire the retail and wholesale business and the logistics and warehousing business from the Future Group as going concerns on a slump sale basis for lumpsum aggregate consideration of INR 24,713 crore,” the company said in a statement.
“We are pleased to provide a home to the renowned formats and brands of Future Group as well as preserve its business ecosystem, which have played an important role in the evolution of modern retail in India.
We hope to continue the growth momentum of the retail industry with our unique model of active collaboration with small merchants and kiranas as well as large consumer brands. We are committed to continue providing value to our consumers,” said Isha Ambani. Director, Reliance Retail.
Post the transaction, Reliance Retail will have access to close to 1,800 stores across Future Group’s Big Bazaar, FBB, EasyDay, Central, Foodhall formats, spread in over 420 cities. As per the contours of the deal, the company will also take over the borrowings and liabilities Biyani and will “discharge the balance consideration by way of cash”.
As of September, 2019, the combined debt of Future Group’s listed companies rose to Rs.12,778 crore, from Rs.10,951 crore in March 2019.
“This transaction takes into account the interest of all its stakeholders including lenders, shareholders, creditors, suppliers and employees giving continuity to all its businesses,” said Kishore Biyani, Group CEO, Future Group.
Who is Kishore Biyani?
Kishore Biyani is an Indian Billionare businessman who is the Founder & CEO of Futue Group, one of India’s biggest brick-and-mortar retailers. He is also the founder of retail businesses such as Pantaloon Retail and Big Bazaar.
|Born||Mumbai, Maharashtra, India|
|Alma mater||H.R. College|
|Occupation||CEO of future group|
|Notable work||It Happened in India|
|Net worth||US$1.78 billion (2019)|
Kishore Biyani, an alumnus of Mumbai’s H R College started his journey selling stone-wash denim fabric in Mumbai in the 1980s.
Kishore Biyani, who started his entrepreneurial journey when he was 26-year-old in 1987 by launching Manz Wear which later adopted the brand name of Pantaloon by opening the first Pantaloons store in Kolkata.
His dream was of making available to everyone what only the rich could afford and launched his own label, says Biyani’s profile on the portal of Future Group.
Biyani, who started , has agreed to hand over the control of his retail empire to relatively new entrant Reliance Retail, a part of Mukesh Ambani-led Reliance Industries, in a Rs 24,713 crore deal.