Reliance Retail Ventures Ltd., a subsidiary of Reliance Industries Ltd has announced an acquisition of the retail, wholesale, logistics and warehousing business of Future Group for a sum of Rs 24,713 Crore. Reliance has been in constant discussions with future group regarding acquisition of these businesses since June’20. Reliance Retail will take over all of Future group’s key consumer-facing business units built and owned by Kishore Biyani ,and is also expected to take up all the debts and liabilities.
The acquisition is being done as part of the scheme in which Future Group is merging certain companies, including Future Retail, Future Lifestyle Fashions, Future Consumer, Future Supply Chains and Future Market Networks carrying on the business into the Future Enterprises Limited (FEL).
Analysts have said that the deal has been finalized at the time when Future Group was facing cash flow and debt servicing issues. Analysts have also added that the lenders will get back their money while the employees would be able to breathe easy in this uncertain time.
With this acquisition, brands such as Bazaar, fbb, Foodhall, Easyday, Central, Nilgiris and Brand Factory will fall into Reliance’s hands.
Isha Ambani, the director of Reliance Retail Ventures stated that with the help of this acquisition, they expect to continue the momentum of the retail industry. They wish to continue to provide value to their consumers and are pleased to provide a home to the renowned brands of Future Group .
The latest deal will further provide leverage to RIL’s ambition to increase Jio’s subscriber base and compete heads-on with other E-commerce giants.