new Delhi. Reliance Retail Ventures Ltd, a company of Mukesh Ambani, has bought the retail, wholesale logistics and warehouse business of Future Group for Rs 24713 crore. This mega deal will further strengthen the company’s position in retail business. As per information provided by the company, Reliance Retail Venture Limited, a subsidiary of Reliance Industries Limited, has bought out the retail and wholesale business of Future Group and the logistics and warehousing business for a total of Rs 24,713 crore. Reliance Retail is strengthening its hold in the Indian e-commerce market to compete with giants like Amazon.
Which enterprise will be transferred to whom
As part of the deal, Future Group is merging some companies into Future Enterprises Limited (FEL). Under this scheme, retail and wholesale enterprises are being transferred to Reliance Retail and Fashion Lifestyle Limited. It is a wholly owned subsidiary of RRVL, with logistics and warehousing undertaking being transferred to RRVL.
There will be development in the retail sector
Isha Ambani, director of Reliance Retail Ventures Ltd, said that we would be happy to preserve the Future Group’s well-known brands as well as its commercial eco system. It will play an important role in the development of modern retail in India. He expects the pace of growth in the retail sector to continue with the participation of small traders, grocery stores and big consumer brands, we are committed to providing better value to our consumers across the country. Mukesh Ambani, owner of Reliance Industries, had set a target of adding three crore grocery owners and 12 crore farmers in the retail business.
RRVL said that as part of this acquisition plan Future Group is merging some of its companies with Future Enterprises Ltd (FEL). The company said that under the scheme the retail and wholesale business of Future Group would be transferred to Reliance Retail & Fashion Lifestyle Limited (RRFLL), a subsidiary of RRVL. It will invest 1,200 crore through a preferential issue and buy a 6.09 per cent stake in Future Enterprises Limited.