Reliance Industries Ltd announced the acquisition of Kishore Biyani’s Future Group on giving a major boost to the retail and wholesale business.
According to the agreement, in exchange for Rs 24,613 crore, Future Group’s retail and wholesale business, as well as goods transport and warehousing business, will be handed over to Reliance.
The business community believes that the acquisition will intensify competition in the country’s retail business, as in the case of telecom.
The move would put Reliance far ahead of Jeff Beowulf’s company Amazon.
Kishore Biyani’s Future Group changed the retail map of India courtesy of brands like Pantaloons and Big Bazaar.
The pantaloons have already gone into the hands of the Aditya Birla group.
This time, Reliance Retail Ventures, a branch of Reliance, is selling brands such as Brand Factory, FBB, Fashion, and Big Bazaar, Easy Day.
Isha Ambani, daughter of Mukesh, co-founder of Reliance Retail Ventures Limited, said, “Through this acquisition, we are giving a home to a well-known brand like Future Group.
At the same time, Future Groups will be able to maintain their own business infrastructure.
We think that this joint activity of ours will widen the path of development.
So that we can move forward with all our small capital businessmen to big businessmen.
After the acquisition, Reliance will invest several Rs 100 core in the company.
A joint statement issued by the two companies said that Mukesh Ambani’s Reliance Group would invest a total of Rs 24,613 crore to buy futures business.
Reliance is also paving the way for another Rs 1,700 crore investment in the future.
However, no one has commented on what will happen to Amazon’s 1.3% share taken in the Futures Group. Amazon bought the shares last year.
According to the agreement, Mukesh Ambani will have 1,550 stores in Future Retail and 354 stores in Future Lifestyle Fashion. You will find Big Bazaar, Brand Factory, FBB, Easy-Day, Heritage Fresh, WH-Smith.
The future group of Kishore Biyani will meet the market debt with the money of this investment of Reliance.
However, futures insurance and financial services businesses are not covered by the agreement.
The futures business was hit by the closure of the store for a long time due to the Corona crisis.
In this situation, it was as if the knot was about to be tied. Corona and the problems of the economy have also come up in the word.