On Saturday, Reliance Industries Limited (1), led by Mukesh Ambani, announced acquiring of Future Group’s business for 24,713 crore INR. Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries Limited, declared that it is purchasing the Retail and Wholesale Business from the Future Group. The company added to the statement that it is going concerns on a slump sale basis for a lump sum aggregate consideration of 24,713 crore INR.
Benefits of this deal to Reliance RRVL has propounded to invest INR 1200 crore in the preferential issue of equity shares of Future Enterprises Limited (FEL). It will help to achieve 6.09 percent of post-merger equity warrants.
Further, its conversion and payment of balance 75 percent of the issue price will allow RRVL to gain 7.05 percent more of FEL. This deal will also enable Reliance to take over 1,800 brick and mortar stores of the Future Group. It includes Big Bazaar, FoodHall, Central, Brand Factory, and Nilgiris, among others. It currently operates around 11,500 stores over 6,600 plus towns and cities.
Isha Ambani on the Latest Development of Reliance
While commenting on the latest development, Isha Ambani, Director of RRVL, stated that they are pleased to provide a home to the renowned formats and brands of Future Group with this transaction. The company will also preserve its business ecosystem, which has played a vital role in modern retail in India.
The company also hopes to continue the growth momentum of the retail
industry with its unique model. It is about collaboration with small merchants and kiranas, as well as large consumer brands. It is committed to continuing the providing value to its consumers across the country.
Also, just ten days back, Reliance retail forayed into the pharmaceutical and healthcare industry. It did this by obtaining a majority equity stake in Chennai based Vitalic Health Pvt. Ltd and its subsidiaries. The stake is for almost INR 620 crore to compete against e-commerce giant Amazon.
Author: Rucha Joshi
Source : https://timesnext.com/reliance-expands-into-retail-acquires-future-groups-business/
Date : 2020-08-31T11:27:08.000Z