Kishore Biyani has agreed to merge its retail business with Sunil Bharati’s Bharati Retail. Post merger, both Future retail and Bharati retail will become one of the India’s biggest retail chain businesses with Rs 15000 crore turnover.
Board of Directors Of both Future Retail Limited and Bharti Retail Limited have approved the deal of partnership between the companies.
Future Group operates over 17 million square feet of retail space in different formats and categories across 166 Indian cities.
Bharti Retail currently operates a network of over 200 ‘easyday’ stores in multiple formats across 114 cities with a strong presence in key markets like Punjab, Haryana, National Capital Region, Western Uttar Pradesh, Uttarakhand and Bangalore.
The Combined entity will have over 570 Retail stores in 243 Cities with operational retail space of over 18.5 Million square feet. It will operate 203 Big Bazaar and ‘easyday’ hypermarkets, 197 FoodBazaar And ‘easyday’ supermarkets and 171 Other stores comprising of Home Town, eZone, FBB And Foodhall.
Mr. Kishore Biyani, Founder And Group CEO, Future Group said, “Bharti Retail’s Strengths and network compliment perfectly with that of Future Retail. It will bring us closer to millions of consumers and provide new opportunities for our supply partners. The Operational efficiencies that can be derived from the merger will create significant value for our shareholders.”
To streamline the operations resulting from this consolidation, the Board of Directors of Future Retail and Bharti Retail have proposed a demerger of the retail business of Future Retail to Bharti Retail, and a demerger of the infrastructure business of Bharti Retail to Future Retail. After the demerger becoming effective, the business will be operated through two distinct entities.
The First entity, to be known as Future Retail Limited (proposed) Post the completion of the demerger, will host the retail operations of both the entities.
The Second entity, to be known as Future Enterprises Limited (proposed), post the completion of the demerger will host the infrastructure, investments and assets of both the companies.
Post the consolidation, the shareholders of Bharti Retail and the shareholders of Future Retail, Will be shareholders in each of the entities. The consolidation and the demerger are subject to approvals of shareholders, the Hon’ble High Court of Bombay, the Competition Commission of India, the stock exchanges and other regulatory bodies.
Last time in 2012, Kumar Mangalam Birla’s Aditya Birla Nuvo Ltd (ABNL) has acquired Pantaloons Fashion from the Future Group.