Reliance Retail buys Future Group's retail arm
Updated: Sep 2, 2020
On Saturday, Mukesh Ambani's Reliance Industries Ltd. announced the acquisition of Kishore Biyani's Future Group for 24,713 crores. This will add to RIL’s rapidly growing retail sector as it gets access to 1800 more stores. The retail stores of Future Group include Big Bazaar, FBB, EasyDay, Central malls and Foodhalls. The retail and wholesale sector will be transferred to Reliance Retail and Fashion Limited Lifestyle (RRFLLL). Following this acquisition, Future Enterprises Limited (FEL) would emerge powerful in the manufacturing and distributing of FMCG goods and integrated apparel sourcing and merchandising with businesses.
Ambani is now moving ahead with his ambitions in the brick-and-mortar retail and e-commerce market, after disrupting India's telecom sector. Asia's richest man is on a quest to turn his conglomerate into consumer-facing empire and reduce reliance on revenue from its conventional petrochemical and oil refining businesses. Ambani is on his way to tackle Amazon and Walmart.
As a result of this reorganization and agreement, the Future Group believes that they can achieve a holistic solution to the challenges that COVID and the macroeconomic environment have generated. The overall transaction takes into account all its stakeholders' interest in providing continuity to its entire business.