All About Reliance - Future group deal worth 24,713 crore

· Mordern day Retail king Kishore Biyani quits and surrenders his business which he took 30 years to build

· Mukesh Ambani Acquires future group's Retail,Wholesale,Logistics & Warehousing Business for 24,713 crore

· This deal Becomes Largest Deal of 2020 in Asia

2020 is not a good year for all of us as COVID-19 hit the world and spoils everyone's life but Mukesh Ambani is exception here. first he got foreign investment in RIL own Jio platforms and later acquired Many business including the Recent one NetMeds and now acquires Future group’s whole business for Rs.24,713 crore let’s explore all about this deal.

Future group's complete business will be distributed in to two subsidiaries of Reliance industry, Retail and wholesale will be transferred to Reliance Retail and fashion lifestyle limited (RRFL) and logistics and warehousing business will be transferred to Reliance Retail Ventures limited(RRVL).

Reliance will clear out all the debt of Future group and also invest Rs 1,200 crore in the special issue of equity shares of Future enterprise limited to acquire 6.09 percent of post-merger equity. Rs 400 crore in a special issue of equity warrants which will result in RRFLL acquiring.

Kishore biryani, Founder of Future group was struggling to pay the debt worth of Rs 12,778 crore as of September 2019 and by March 2020 biyani’s net worth declined to US$400 million from US$1.7 billion. Facing tough competition from E-Commerce players along with RIL’s Retails businesses. Big bazar was struggling to find footfalls and day by day the operating expenses climbing to the new heights. Further to this the lock-down impacted Future group’s stock performance and share price plunged by 80 percent in just four months. All this forced biyani to find the investor for stack sale and ultimately drove him to the entrepreneur who already surpassed him to be the new Retail King Mukesh Ambani.

Isha Ambani, Director of Reliance Retail Ventures expressed her views on this mega deal,” We are committed to continue providing value to our consumers across the country. 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”

This deal was Crucial for Biyani and the Future Group which came under massive pressure from the moneylenders & Investors. Mukesh Ambani turns the savior here just like previously to his younger brother Anil Ambani for Ericson’s case and Acquired business to have a monopoly in Indian retail industry and to compete with global giant Amazon.

Post this deal Future group will arise as strong player of manufacturing and distribution of FMCG products and integrated fashion sourcing and merchandising. All these business will further get benefited from Supply agreement of with Reliance Retail and fashion lifestyle limited (RRFL). This deal also help future group to develop new product and brands under FMCG and fashion vertical to expand the consumer reach.