InvestorQ : Is it confirmed now that Reliance Industries is taking over the Future Retail belonging to Kishor Biyani?
Dia Deshpande made post

Is it confirmed now that Reliance Industries is taking over the Future Retail belonging to Kishor Biyani?

Answer
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Ria Jain answered.
2 months ago


While the company is yet to confirm the final contours of the deal, it is now almost clear that the deal will go through sooner rather than later. Effectively, Kishor Biyani will lose control of his retail franchise nearly 30 years after he first took the Indian retail scene by storm with the Pantaloon launch. Reliance Retail is likely to be the new owner.

As per the preliminary terms of the deal, Biyani will cede control over all businesses of Future Retail including Big Bazaar, FBB, Food Hall and Central Mall. In addition, Future Supply Chain Solutions and Future Lifestyle Fashions will also be sold to Reliance Industries. Kishor Biyani had earlier sold the Pantaloons retail chain to the Aditya Birla group in 2012.

Post the deal, Biyani will be left with only the FMCG business of the Future group and some smaller group entities. The final contours of the deal are still under deliberations and a formal announcement is expected shortly. Future had also been in talks with Premji Invest and Samara Capital as well as Amazon before finally finding a suitor in Reliance Retail.

Reliance Retail has already emerged as the largest retail player in the country by a huge margin with revenues of Rs.162,936 crore as on March 31, 2020. Reliance Retail has 11,784 retail stores. While RIL gets to expand its retail reach substantially through one acquisition, for Biyani and the Future it is a lucky escape from moving closer to a debt default.