Related Videos. NEW DELHI: Billionaire Mukesh Ambani's Reliance Industries on Saturday announced acquisition of Future Group for Rs 24,713 crore to bolster its fast growing retail business. The oil-to-chemical conglomerate's retail venture is India's largest offline retail company.
For example, retail supermarket/hypermarket chains Big Bazaar, FBB, Food Bazaar, Food Hall, Hometown, etc. are operated by its retail division, Future Retail Limited, while its fashion and clothing outlets Brand Factory, Central, and Planet Sports are operated via another of its subsidiaries, Future Lifestyle Fashions
New Delhi: In yet another blockbuster deal, Mukesh Ambani's Reliance Industries Ltd on Saturday announced the acquisition of businesses of Kishore Biyani's Future Group for ₹24,713 crore to add to its fast expanding retail business and bolster e-commerce to take on the competition from Jeff Bezos' Amazon.
Future Consumer isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. In the last 5 years Future Consumer saw its revenue grow at 26% per year. Even measured against other revenue-focussed companies, that's a good result.
Who is the CEO of Future Group?
Biyani's ambitious Retail 3.0 strategy never really took off. While Future Group's revenue is around Rs 35,000 crore, Future Consumer is just a Rs 4,040 crore business (as against the Rs 20,000 crore goal). It suffered a loss of Rs 215 crore in FY20. The group has 990 EasyDay stores; it shut down 150 in Q3FY20.
Here are the main reasons: Future Group has accrued heavy debt over the years. As of September 30, 2019, debt at Future Group's listed entities rose to Rs 12,778 crore from Rs 10,951 crore as on March 31, 2019. He dreamt of scaling up the Rs 2,000 crore business to Rs 20,000 crore by 2021.
Brand Factory is a chain of retail stores operated by Future Group.
Future Retail posted a consolidated net profit of Rs 11.29 crore in the financial year 2019-20. The company saw its profit decline 98.44 per cent compared to Rs 727.19 crore in the corresponding quarter of the previous fiscal.
Future Group founder Kishore Biyani on Wednesday said the homegrown retail major lost nearly Rs 7,000 crore revenue in first three-four months of the COVID-19 pandemic due to closing of stores, which led him to sell his business to Reliance Industries.
India's one of the most iconic retail brands: Big Bazaar, has been bought by Reliance for Rs 24,713 crore. Reliance has officially confirmed this now. This is India's one of the biggest retail acquisitions, which makes Reliance Retail, already India's #1 retailer unstoppable.
Big Bachat Bazaar aims at making your everyday shopping very comfortable & relaxing. We provide the best quality available at the lowest prices. Our Business Model: We are offering franchise opportunity to interested candidates having space either owned or leased of 300 to 3000 sq ft.
Grocery has become appealing for Ambani. With the Future Retail acquisition, Ambani gets hold of large format stores like Big Bazaar, FoodHall, FBB (fashion) and small format stores like Easyday and WH Smith.
Future's retail unit will go into liquidation if the transaction with Reliance doesn't go through, hitting the livelihoods of thousands of employees and workers at its vendor firms, the Indian group argued before the arbitrator, Reuters reported citing the order that is not public.
Future Retail share fell in early trade today after five sessions of consecutive gains. Sentiment in the Future Group stock turned weak after National Stock Exchange (NSE) warned the firm it risked regulatory action for not making timely market disclosures about efforts by Amazon.com to block a disputed asset sale.
Mumbai: Reliance Industries (RIL) on Saturday said its unit Reliance Retail Ventures (RRVL) is acquiring the retail & wholesale business and the logistics & warehousing business from the Kishor Biyani-promoted Future Group as going concerns on a slump sale basis for a lumpsum amount of Rs 24,713 crore.
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Future Group firm Future Consumer Ltd. said on Monday that it has defaulted on payment of principal redemption and interest on non-convertible debentures. In a regulatory filing, the company said it has been unable to service its obligations towards payment of principal redemption and interest due on September 5, 2020.
Future Group's retail business is vested under the listed entities Future Enterprises, Future Consumer Ltd., Future Lifestyle Fashions and Future Retail. Its non-retail business is undertaken through Future Supply Chain Solutions Ltd. and Future Market Networks Ltd.
Future Consumer currently has more than 22 brands that spans across over 50 categories. Some of these brands include Tasty Treat for snacks, Voom for fabric care, Dreamery for dairy, Karmiq for dry fruits, Mother Earth for organic staples, TS for beauty, Kara for personal care, among several others.
