MAM

Reliance finally acquires Kishore Biyani's Future retail group

The acquisition will add new retail formats to the Reliance retail empire.

https://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/tv-images/2020/08/29/kishor.jpg?itok=cOtORpQw

MUMBAI: Mukesh Ambani, Asia’s richest man, can add another sobriquet to his name: that of India’s undisputed – means undisputed -  Retail King. Today, his Reliance  group announced that it was acquiring the retailing empire of Kishore Biyani, who earlier bore the retail king title, in a transaction valued at Rs 24,173 crore. This ends months of speculation and reportage in the Indian media that the two were in talks.

The vehicle for the acquisition: Reliance Retail Ventures Ltd (RRVL), a subsidiary of Reliance Industries Ltd (RIL).  The deal covers the the retail, wholesale, logistics and warehousing businesses from the Future group. The latter is merging certain companies carrying on the above mentioned business into Future Enterprises Ltd (FEL).

As a part of the same scheme, the  retail and wholesale undertaking is being transferred to Reliance Retail and Fashion Lifestyle Ltd (RRFLL), a wholly-owned subsidiary of RRVL; the logistics and warehousing undertaking is being transferred to RRVL; and RRFLL also proposes to invest Rs 1,200 crore in the preferential issue of equity shares of FEL to acquire 6.09 percent of post-merger equity; and Rs 400 crore in a preferential issue of equity warrants which, upon conversion and payment of balance 75 per cent of the issue price, will result in RRFLL acquiring a further 7.05 per cent of FEL.

The Future Group has some well-established  retail formats, including supermarket chain Big Bazaar, upmarket food stores Foodhall, and bargain clothing chain Brand Factory.

"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,” RRVL director Isha Ambani said.  “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."

Biyani had built up a huge pile of debt at the Future group to fund his expansion plans, but the Covid2019 pandemic put paid to his ability to service it.

Latest Reads

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/22/bharatpe.jpg?itok=73dOVmOK
BharatPe ropes in 11 cricketers as brand ambassadors

NEW DELHI: As the country gets ready to kickstart the festive season through cricket, BharatPe, India’s leading merchant payment network, is all set to invigorate the market with its own team of 11 cricket superstars as it's brand ambassadors. The BharatPe XI team includes India’s top international...

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/22/cri.jpg?itok=CHWmfg0L
Festival season will be the golden quarter for ecommerce players: Criteo Report

New Delhi: Criteo has released its Holiday Report 2020 highlighting key trends in the online e-commerce industry in the much-awaited festive season including Rakshabandhan, Big Billion days and Diwali. The report highlights the top trends observed for the highly thriving e-commerce market in India...

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/22/cl.jpg?itok=iixls6x9
Pocket Aces unveils talent management division Clout

KOLKATA: Pocket Aces, India’s leading digital entertainment company, unveiled new branding for its talent management division, labeling it “Clout”.Clout, which means the ability to influence, will focus on exclusively representing the digital industry’s finest and most popular faces.

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/22/sunil.jpg?itok=ZEB9WL1C
Indian Society of Advertisers elects Sunil Kataria as chairman for fifth term

The newly elected executive council of the Indian Society of Advertisers (ISA) met on September 21, 2020. Sunil Kataria, CEO, India and SAARC, Godrej Consumer Products, was elected chairman of the ISA. Sunil has led the society over the past four years to newer heights drawing support from his...

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/22/mix.jpg?itok=5akV4_Nu
Ashish Bhasin hands over charge of AAAI to Anupriya Acharya

Ashish Bhasin, president of Advertising Agencies Association of India( AAAI)  has handed over charge of  AAAI to Publicis Groupe’s CEO south Asia, Anupriya Acharya, who was elected as the president of Advertising Agencies Association of India (AAAI) for the year 2020-21 at its Annual General Body...

MAM Media and Advertising People
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/22/sig.jpg?itok=9aZC58Je
Charanjeett Singh Arora quits Kinetic India

NEW DELHI: GroupM-owned outdoor agency, Kinetic India co-chief executive officer (CEO) Charanjeet Singh Arora has resigned from his position. He is currently serving his notice period and has confirmed the exit to Indiantelevision.com. He was responsible for driving team transformations spanning...

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/22/pulsar.jpg?itok=Z0mjM6sG
Bajaj Pulsar redefines the rules of motorcycle riding in the new normal

NEW DELHI: Bajaj Pulsar has been a trailblazer in changing the face of the Indian motorcycle industry singlehandedly, with its unique communication and product line-up. And it is all set to blaze new trails in this new campaign that highlights the performance and technology of its range of...

MAM Media and Advertising Ad Campaigns
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/22/cardekho-rahul_dravid.jpg?itok=Ib-1Uw4o
CarDekho focuses on personal mobility in its new spot

NEW DELHI – CarDekho has launched its newest TV campaigns ‘The everyday hero’ championing the cause of personal mobility.

MAM Marketing Brands
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/22/upgrad.jpg?itok=a5r14dyc
upGrad fires on all cylinders; targets explosive growth

NEW DELHI: The pandemic has proven to be a boon for the edtech brands helping them clock more downloads and bag new subscribers. Students, across age groups, have adapted to online learning as schools and learning institutions were forcibly shuttered and and moved online. Both professional and...

MAM Marketing MAM

Sign up for our Newsletter

subscribe for latest stories

* indicates required