Future group retail business surrendered to Reliance
Kishore Biyani sold the retail business by selling the ‘crown jewel’ of the Future Group to Reliance retail owned by Mukesh Ambani. This bulk transaction with a combined value of Rs 24,713 has established Reliance retail as the undisputed market leader n the organised retail segment. It is a huge advantage for reliance retail, since the retail firm is currently in a vigorous battle with Amazon in the e-commerce sector. Leading retails such as Big Bazaar, Food Hall, and Brand factory come under Future group.
Under this acquisition scheme future group is merging certain business to Future Enterprises Limited (FEL). It was also under this scheme the future group transfer its retail business to Reliance Retail and Fashion Lifestyle Limited (RRFLL). Kishore Biyani built a strong retail business under Future groups with painstaking efforts over the past three decades. His exit is due to the overflowing debts and the effects by pandemic. On the other side through this deal, the retail business of Future business has been saved from its collapse and falling into the chaos of India’s bankruptcy court.
The deal also showed the world the importance of Indian retail business to the world. The lenders and investors of Future group will feel secured about their investment after it is taken over by Reliance retail. The employees of the Future group have also escaped from a pity situation from the future and also has the possibilities of enjoying welfare since the reliance retail is expanding in a greater dimension across India.
What do you think about this great acquisition scheme? What will be the upcoming situation of the Future group? To what extent Reliance retail will get benefitted through this acquisition? Ideas popping up?
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