Reliance Retail Ventures Limited, a subsidiary of Reliance Industries, on Saturday acquired the retail, wholesale, logistics, and warehousing businesses of Futures Group. The deal between Reliance Retail and Future Group was worth Rs 24,713 crore. As of March 31, 2019, Future Group had a debt of Rs 10,951 crore. As of 30th September 2019, it has risen to Rs 12,778 crore they have tagged. However, the financial and insurance businesses of Future Group are not part of the deal.
Reliance said Reliance Retail Venture Limited (RRVL) will gain retail and wholesale businesses and logistics and storage businesses from Future Group. They enter the agreement between the two companies as part of a special plan, in which Future Group merges certain future business entities into Future Enterprises Limited (FEL).
The company says they will transfer it to Reliance Retail and Fashion Lifestyle Limited (RRFLL), a retail and wholesale subsidiary of Future Group RRVL. RRFLL belonging to RRVL the RRFLL also proposed it invest Rs 200 crore in FEL within the framework of priority actions.
“The deal will expand the retail sector,” said Isha Ambani, director of Reliance Retail Ventures Limited, who said the deal would play an important role in the development of modern retail in India. We hope it will speed up the retail sector through the coordination of small businesses, grocery stores, and major consumer brands.
Reliance will strengthen its position in the retail market. The acquisition of Future Group’s retail, wholesale and supply chain businesses will strengthen Reliance’s market position. After the deal, the Reliance retail store lineup could grow to 18,000 The company’s revenue will also increase by Rs 26,000 crore and capture a third of the Indian retail market.
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