Billionaire Mukesh Ambani’s Reliance Industries Ltd (RIL) has acquired the businesses of Kishore Biyani’s Future Group for Rs 24,713 crore to add to its retail business.
“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,” Reliance said in a statement.
According to a report, Reliance Retail will now have access to nearly 1,800 stores of Future Group’s Big Bazaar, FBB, Easyday, Central, Foodhall formats.
These stores are spread in over 420 cities across India.
Reliance Retail director Isha Ambani said: “Pleased to provide a home to the renowned formats and brands of Future Group.”
“With this transaction, 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,” said Isha Ambani.
“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 across the country,” she added.
Future Group is merging certain companies carrying on the businesses into Future Enterprises Limited (FEL), said the report.
The retail and wholesale undertaking of Future Group will be transferred to Reliance Retail and Fashion Lifestyle Limited (RRFLL), a wholly-owned subsidiary of RRVL.
“As a result of this reorganisation and transaction, Future Group will achieve a holistic solution to the challenges that have been caused by Covid and the macro-economic environment,” said Kishore Biyani, Group CEO, Future Group.