On 29th August, Reliance Industries limited announced its purchase of Future Group for ₹24,713 crores in a ‘slump sale’ (2(42C) of Income-tax Act 1961). According to a statement by the company, the Future Group will be acquired by Reliance Retail Ventures Ltd which is run by Isha Ambani.
This is a part of Reliance Industry’s larger attempt to compete with companies like Amazon in the Retail sector, especially with reference to the Indian market.
As a result of this sale, Reliance has now ownership over Future Groups’ 1800 stores in 420 cities as well as brands like Big Bazaar, FBB, Central and more.
Reliance Ind-Future Ent Deal | Rel Retail to acquire retail & wholesale, logistics & warehousing biz from Future Group. Co will acquire businesses from Future Group on slump sale for Rs 24,713 cr pic.twitter.com/qRHOUJN7Fv
— CNBC-TV18 (@CNBCTV18Live) August 29, 2020
Statements regarding this massive sale were made by all parties involved.
Kishore Biyani said, “We are pleased that our strong retail franchise and brands, that we have created over time, are going in stronger hands and will continue to grow and delight Indian shoppers.” Mr Biyani also said, “As a result of this re-organisation and transaction, Future Group will achieve a holistic solution to the challenges that have been caused by COVID-19 and the macro economic environment. This transaction takes into account the interest of all its stakeholders including lenders, shareholders, creditors, suppliers and employees giving continuity to all its businesses.”
In a statement, Isha Ambani, the Director of RRVL, said, “With this transaction, we are pleased to provide a home to the renowned formats and brands of Future Group as well as preserve its business ecosystem, which have played an important role in the evolution of modern retail in India. We hope to continue the growth momentum of the retail industry with our unique model of active collaboration with small merchants and kiranas as well as large consumer brands. We are committed to continue providing value to our consumers across the country.”
