Reliance Retail Ventures is part of billionaire Mukesh Ambani’s Reliance Industries
Reliance Industries, led by billionaire Mukesh Ambani, announced on Saturday the acquisition of Future Group’s retail, wholesale, logistics and warehousing businesses for Rs 24,713 crore through its subsidiary, Reliance Retail Ventures. The deal is part of the scheme in which Future Group is merging certain group companies into Future Enterprises, and is subject to regulatory and shareholder approvals, Reliance Industries said in a regulatory filing. The transaction had reportedly been in the works for months.
Here are 10 things to know:
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Reliance Industries said the acquisition of Future Group’s retail, wholesale and supply chain businesses makes a strong strategic adjustment to its retail business.
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While Future Group’s logistics and warehousing units will be transferred to Reliance Retail Ventures, the retail and wholesale businesses will be part of its wholly owned arm, Reliance Retail and Fashion Lifestyle.
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“With this transaction, we are pleased to provide a home for Future Group’s renowned brands and formats, as well as to preserve its business ecosystem, which has played an important role in the evolution of modern retail in India,” said Isha Ambani, Director , Reliance Retail Ventures.
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Future Group, owned by billionaire Kishore Biyani, is home to the Big Bazaar supermarket chain, luxury food stores Foodhall, and cheap clothing chain Brand Factory.
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Reliance Industries said that the composition of Future Group’s portfolio of apparel, general merchandise and fast-moving consumer goods brands will allow a broader offering for its customers.
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The agreement will help Reliance Retail accelerate and provide “support to millions of small merchants to increase their competitiveness and improve their revenues during these difficult times,” the company added.
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“We look forward to continuing 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,” he added.
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Reliance Retail Ventures is part of conglomerate Reliance Industries, which was net debt-free in June, months before its March 2021 target.
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Reliance Industries has been diversifying its business and increasing its retail presence. In May, it launched an online grocery service, JioMart, a move that rivals Amazon’s Flipkart and Walmart in India, a key growth market for e-commerce.
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It has raised over Rs 2 lakh crore this year by selling stakes in its telecommunications arm, Reliance Jio, to investors such as Google and Facebook, as well as a rights issue worth Rs 53,000 crore.
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