After weeks of negotiations, Mukesh Ambani’s Reliance Industries has finally 💪acquired the businesses of debt-ridden Future Group.
The Rs. 24,713 crore deal will see the merger🔄 of Future’s retail, wholesale, logistics and warehousing operations into Reliance’s subsidiary, Reliance Retail.
Meanwhile, Reliance will take over Future Groups’s Rs. 12,500 crore worth of debts😳.
However, Kishore Biyani’s company will retain the manufacturing and distribution of consumer products, fashion sourcing & manufacturing business🏭 and an insurance joint venture.
Adds to its Muscle
The above-mentioned deal will see Reliance get access to nearly 1,800 of the Future’s Group’s stores🏢.
They are spread across 420 Indian cities🌆 in Big Bazaar, FBB, Easyday, Central, Foodhall formats.
Reliance, which is already the country’s largest retailer✌️ in terms of number of stores will now control over a third of India’s organized retail market.
The addition of Rs. 26,000 crore worth of sales will help Reliance create a Rs. 1.89 lakh crore ($26 billion) retail empire😎.
It will be seven times bigger than its nearest rival🤼♂️, Avenue Supermarts that runs D’Mart.
India’s retail sector is estimated to be worth $1.3 trillion💰 (Rs. 98 lakh crores) by 2025, up from $700 billion in 2019.
End of a legendary innings!
Selling his business to Reliance will mark the exit😒 of Kishore Biyani, who is often called “the father” of India’s organised retail.
He founded Future Group in 1987🗓️.
By targeting middle-class Indian consumers through aggressive pricing🤑, Biyani went on to become a retail juggernaut.
But it also led to his companies getting burdened😣 with a net debt of nearly Rs. 13,000 crore.
It resulted in the company’s entire shareholding getting pledged with its lenders😠.