Future retail reliance deal
After future retail reliance deal, Future Group’s retail and wholesale business will come under Reliance Retail & Fashion Lifestyle Limited (RRFLL). Reliance retail & fashion lifestyle limited is a wholly-owned subsidiary of Reliance Retail Ventures Limited (RRVL).
Future Group to be acquired for 4713 crores
Reliance Retail Ventures Limited is going to acquire the retail and wholesale business of Future Group. The company informed about this by releasing a press release on Saturday. This will give Reliance Future Group access to over 1,800 stores of Big Bazaar, Easyday and FBB, spread across 420 cities in the country. This deal has been finalized in 24713 crores. After this deal, Reliance has become a No.1 in the retail business in India.
Future Group will be acquired by Reliance for just Rs 24713 crore, in which Reliance Industries will pay Rs 13,000 crore loan to Future Group. Along with this, another liability of Rs 7,000 crore will also be paid, which includes payment of rent and vendors.
If we say in the second language, Reliance acquired Future Group for only 4713 crores
Reliance will repay future group’s liabilities
According to future retail reliance deal, Reliance Industries will repay a loan of Rs 13,000 crore from Future Group. Along with this, another liability of Rs 7,000 crore will also be paid, which includes the payment of rent and vendors. Let us know, Reliance Industries Future Group can buy for 30 thousand crores. For this, the future group will merge 5 listed companies, Future Consumer, Future Lifestyle Fashion, Future Retail Limited, Future Supply Chain, and Future Market Networks will merge with Future Enterprises Limited (FEL). After this, FEL will divide its retail assets into two parts and sell them to Reliance Industries as a unit. However, officially the two companies have not yet shared any information related to this deal.
There is no clarity on Amazon’s stake yet
In future retail reliance deal, Reliance Industries has bought the promoters’ entire stake in Future Retail and Future Lifestyle Fashion, but it has not yet been clear what will happen to Amazon’s stake in Future Retail. In August last year, Amazon bought a 49% stake in Future coupon limited, a subsidiary of Future Retail, by acquiring a 1.3% stake in Future Retail.
RRFL and RRVL share’s
After future retail reliance deal, Future Group’s retail and wholesale businesses will be taken over by Reliance Retail & Fashion Lifestyle Limited (RRFLL). RRFLL is a wholly-owned subsidiary company of Reliance Retail Ventures Limited (RRVL). On the other hand, the logistics and warehousing business of Future Group will be occupied by Reliance Retail Ventures Limited (RRVL).
After the Future Retail Reliance deal, Reliance Retail & Fashion Lifestyle Limited will have a stake in listed companies of Future Group such as Big Bazaar, Nilgiris, FBB, Heritage Foods, Central, Lee Cooper, Foodhall, Easyday, and Brand Factory. Future Retail has 1700 stores across the country.
What will be left of the FEL (Future enterpises Limited) after this deal
- Manufacturing & distribution of consumer products.
- Fashion sourcing & manufacturing business.
- Insurance JV with general.
- Textile partnership with NTC mills.
Reliance will invest in second unit of Future enterprises limited (FEL)
As we told you above that before future retail reliance deal, the 5 listed companies of Future Group will be merged to form Future Enterprises Limited and then it will be divided into two units, out of which part of retail and wholesale business will be sold to Reliance, after that whatever business inside Future Enterprises Limited Reliance will buy some of its stake
Reliance will invest around 2800 crore rupees in two installments of Fail’s unit, of which 6.09% stake will be acquired by investing 1200 crore in the first installment and 7.05% stake in the second installment by investing 1600 Crore.
What did Isha Ambani say?
On the development of modern retail business in India, Isha Ambani, director of Reliance Retail Ventures Ltd, says that the future retail Reliance deal and the involvement of small traders, grocery stores and big consumer brands will lead to good growth in retail, and us Future Group We will be happy to preserve the well-known brands in the world as well as its commercial ecosystems as we are committed to providing better value to our consumers across the country.Download Report
Target to connect 12 crore farmers with Reliance Retail
Mukesh Ambani, the owner of Reliance Industries, had a target of adding 3 crore grocery stores and 12 crore farmers to Reliance Retail so that Reliance could get a good boost in retail business.
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