reliance

This week saw one of the biggest ever deals🤝 in the business history of India.

Mukesh Ambani led Reliance Industries acquired retail, wholesale, logistics and warehousing businesses of Kishore Biyani’s Future Group in a mega-deal worth nearly Rs. 25,000 crores💰.

The deal also had ☝️a significant implication for the Indian retail industry as it ensured that Kishore Biyani and his family members won’t be able🚫 to re-enter it for the next 15 years.

This restriction is applicable for both online and offline retail segments.

The reason behind this is the non-compete clause📃 in this deal.

Generally, most non-compete agreements run for 3-5 years🗓️ but financial compulsions may lead to a much longer period.

An exception though!

Despite the above-mentioned restriction, Kishore Biyani, who is regarded as “the father”🙏 of India’s modern retail” can still operate in the home retailing segment through his furniture🛏️ and décor chain “HomeTown.”

He owns Praxis Retail that runs nearly 50 HomeTown stores🏢.

It was not a part of his deal with Reliance.

The company earned a revenue of Rs. 702 crore in the last fiscal year.

About “the Comeback Kings”

Although rare, there have been cases of Indian entrepreneurs😎 returning to the business fold and competing🤼‍♀️ against brands, they sold in the past.

A prominent example is of Darshan Patel, the co-promoter of Paras Pharma.

After selling most of his stake to a private equity firm in 2006, Patel started a personal care company called Vini Cosmetics💄 in 2010.

On the same lines, apparel brand👚 Biba’s co-founder, Sanjay Bindra started a new label called Seven East just a month after selling his stake.

By admin

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