INDIA:- On Saturday Reliance Industries Ltd announced that Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance industries limited acquiring the Retail & Wholesale Business and Logistic & Warehousing Business from the Future Group as concern on a sale basis aggregate consideration of Rs 24,713 crore subject to adjustments as set out in the composite scheme of arrangements.
This is being done by plan and as part of the scheme in which Future Group is merging certain companies carrying on the aforesaid businesses into Future Enterprises Limited (FEL).
The below points are part of the Same Scheme:
(i) the retail and Wholesale undertaking is now being transferred to Reliance Retail and Fashion Lifestyle Limited (RRFLL).
(ii) Warehousing and logistics are being transferred to Reliance Retail Ventures Limited (RRVL).
(iii) RRFLL also proposes to invest here.
(a) INR 1,200 crore issue of equity shares of Future Enterprises Limited (FEL) to acquire 6.09 % of post-merger equity.
(b) INR 400 crore in an issue of equity warrants which upon conversion and payment of balance 75% of the issue price, which will result in Reliance Retail and Fashion Lifestyle Limited (RRFLL) acquiring future 7.05% of Future Enterprises Limited (FEL).
Ms Isha Ambani, Director of Reliance Retail Ventures Limited, 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 will play an important role in the evolution of modern retail in India. We are happy with this dealing we hope to continue the growth of the Retail industry with our unique model of active collaboration with small merchants and Kirana shops as well as large consumer brands. We are committed to continuing to provide value to our consumers across the country “.
The retail & Wholesale and supply chain business of the Future Group complements makes a strong strategic fit into Reliance Retail business. Reliance retail business will help to accelerate providing support to millions of small merchants in increasing their competitiveness and enhance their income during the challenging pandemic times.
Future Group’s general merchandise and own FMCG brands will allow for a wider offering to its customers.