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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😠.

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