Reliance buys over Future Group’s business, and now has an access to over 1800 stores over 240 cities in India. Reliance is now the owner of the stores like FBB, Big Bazaar, Central and many others. This mammoth deal has marked territorial lines between Ambani and other the big business names like Amazon, also Walmart.
On Saturday, Mukesh Ambani’s Reliance announced the blockbuster deal of winning over Kishore Biyani’s Future group. The Rs. 24,713 crore deal was marked to challenge e-commerce websites like Jeff Bezos’ Amazon. In an official statement they mentioned that Reliance Retail Ventures Ltd a subsidiary of Reliance Industries Ltd will take over the markets of Future Group, including the warehousing business and logistics. The deal was finalised on a massive amount of Rs. 24713 crores.
Isha Ambani the Director of Reliance Retail mentioned that they were happy with the transaction, as it provided a home for the branches of Future Group, while preserving its work ecosystem. She further mentioned that they looking forward to more such collaborations with small and big consumer brands, in order to provide the best results for their customers throughout India.
The transaction is also beneficial for the Future Group, because it has provided them with solutions for the problems created by the ongoing pandemic and the macroeconomic environment. Moreover, the transaction is helpful for the shareholders, stakeholders, lenders and other members of the Future Group.
The merger deal brings five unites of the Future Group under Reliance, including consumer business, apparel, supply and grocery. The thought behind the deal was to provide maximum happiness to the Indian buyers, as mentioned by Biyani. Not only the consumer business, but also merchandising and integrated fashion sourcing will get a boost, resulting in a better balance sheet.
Future group lenders, which include top Indian FMCG companies like ITC have been asked for a reduction of about 40% by Reliance. This current deal was supposed to be signed of by this month, as the lenders of the Future Group want their dues to be cleared before the 31st of August.
With the deal in hand, Ambani the richest man in Asia is trying to push his way through the e-commerce space. The ambitions are soaring high, and have gained its fuel from the change he had brought in India’s telecom sector. The deal has forged new wars between other big names in the retail and e-commerce world, like Amazon.