Future Group Explained

Future Group
Type:Private
Founder:Kishore Biyani
Fate:Acquired by Reliance Industries
Location:Mumbai, Maharashtra, India
Num Employees:50,000
Industry:Conglomerate
Products:
Divisions:

Future Group was an Indian conglomerate, founded by Kishore Biyani[1] and based in Mumbai. The company is known in Indian retail and fashion sectors, operating supermarket chains Big Bazaar and Food Bazaar, lifestyle stores Brand Factory and Central, integrated foods and FMCG manufacturing sectors. Future Retail Limited and Future Lifestyle Fashions Limited are two operating companies whose assets are among the top retail companies listed in BSE,[2] with market capitalization among the highest on the National Stock Exchange of India.[3]

Nearly all of its businesses are managed through sector-focused operating companies.[4]

The group promotes its fashion and sports brands Indigo Nation, Spalding, Lombard, and Bare, and FMCG brands Tasty Treat, Fresh & Pure, Clean Mate, Ektaa, Premium Harvest, Sach.[4] Other operating companies address internal financial matters and consulting.[5] The company is attempting to reduce debt to avoid insolvency, according to industry sources.[6]

History

In May 2012, Future Group announced a 50.1% stake sale of its fashion chain Pantaloons to Aditya Birla Group in order to reduce its debt of around .[7] To do so, the Pantaloons fashion segment was demerged from Pantaloons Retail India Ltd, which was then merged into subsidiary Future Value Retail Ltd and later renamed Future Retail Ltd.[8]

On 21 November 2014, Future Consumer Enterprises Limited acquired 98% of Nilgris from Actis Capital and other promoters. With that, Nilgiris is a wholly-owned subsidiary of Future Consumer Enterprises Limited (FCEL).

In May 2015, Future Group acquired Bharti Retail in a deal worth around .[9] Bharti Retail operated 216 convenience stores, supermarkets and hypermarkets under the brand name Easyday.[10] Following the acquisition, Bharti Enterprises received 9% stakes in Future Retail Limited (manages retail operations) and Future Enterprises Limited (manages infrastructure, investments and assets).[11]

In August 2019, Amazon acquired a 49% stake in Future Coupons, and indirectly obtained a 3.5% minority stake in Future Retail, ahead of an option to buy all or part of the promoters' holding in the company.[12]

In August 2020, it was announced that Reliance Retail had reached an agreement with Future Group to acquire the latter's retail and wholesale businesses and its logistics and warehousing businesses for $3.4 billion.[13] [14]

The merger between Reliance Retail and Future Group was halted in October 2020, after Amazon filed a plea in the High Court for enforcement of EA awarded by the Singapore International Arbitration Center. In August 2021, the Supreme Court of India upheld Amazon's plea to restrain the merger.[15] In December 2021, the CCI withdrew its approval for Amazon's acquisition of a minority stake in Future Coupons, stating that Amazon had misled the regulator about the purpose of its investment in the Future Group company.[16]

Operations and subsidiaries

[17]

Retail

Financial services

Other services

Brands

Future Retail Ltd.

[19]

Future Lifestyle Fashion Ltd

Fashion and lifestyle

Integrated foods and FMCG

Source:[22]

Joint ventures and associate companies

FabFurnish

FabFurnish was launched as an online retailer of furniture, décor, and home appliances in March 2012 by Vikram Chopra,[1] Mehul Agrawal, and Vaibhav Aggarwal.[2] The company was headquartered in Gurgaon, NCR.

In July 2015, the brand announced a strategic restructuring, introducing Ashish Garg and Ankita Dabas as the new leaders. In April 2016, FabFurnish became a Future Group company.[3][4] On 13 April 2017, the Times of India reported that Future Group was likely to close FabFurnish.[5]

Generali Group

Generali is an Italian insurance company, operating in India through a joint venture with Future Group under the brand name Future Generali Insurance. Future Generali operates in India via two Generali India Life Insurance Co. Ltd. (Life Insurance) and Generali India Insurance Co. Ltd. (Non-Life Insurance).[Primary 1]

Staples Inc

Staples Inc., a United States-based office supply retailer, has a presence in over nine cities in India under a joint venture with Future Group.[Primary 2][7] As of April 2013, Future Group had a 60% stake in the partnership.[8]

Skechers

Skechers entered India through a JV with Future Group in 2012. Skechers ended the joint venture in February 2019 by buying 49% them out.[9]

Celio

French fashion Celio entered India in 2008 through a 50:50 joint venture with Future Group's then retail hand, Pantaloons Retail India Ltd (now Future Retail Ltd).[10] In November 2013, Celio hiked its stake in the joint venture to 65%.[11]

Clark

C&J Clark International Ltd. is a UK-based footwear and accessories retailer. Future Group entered into a 50:50 joint venture to form 'Clarks Future Footwear Ltd'. The JV launched its first (1,600 sq ft.) stand-alone store in Connaught Place, Delhi on 19 April 2011.[12]

Future Retail

These are the brands of Future Retail:

See also

References

  1. Web site: Prime. E. T.. Kishore Biyani's Hamletian muddle: Will the Future Group founder walk his talk?. 2020-07-06. ET Prime. 6 July 2020. https://web.archive.org/web/20200706225104/https://prime.economictimes.indiatimes.com/news/68088500/consumer/kishore-biyanis-hamletian-muddle-will-the-future-group-founder-walk-his-talk. live.
  2. Web site: Top Companies in BSE Retail segment by Total assets. 2014-07-25. Moneycontrol.com. 28 July 2014. https://web.archive.org/web/20140728020509/http://www.moneycontrol.com/stocks/marketinfo/totassets/bse/retail.html. live.
  3. Web site: Top Companies in NSE Retail segment by market cap. 2014-07-25. Moneycontrol.com. 28 July 2014. https://web.archive.org/web/20140728021309/http://www.moneycontrol.com/stocks/marketinfo/marketcap/nse/retail.html. live.
  4. Web site: Future Group Businesses as mentioned in its official website . 23 November 2011 . 10 October 2018 . https://web.archive.org/web/20181010063241/http://futuregroup.in/businesses/retail-finance-services.html . dead .
  5. Web site: BSE. 10 Jul 2014. Future Group Companies. 2014-07-25. Profit.ndtv.com. 29 July 2014. https://web.archive.org/web/20140729060626/http://profit.ndtv.com/stock/future-retail-ltd_pantaloonr/reports. dead.
  6. News: Future Enterprises to raise Rs 3,000 crore from insurance biz sale; aims to pare debt, avoid insolvency . The Economic Times . 2022-05-09 . 9 May 2022 . https://web.archive.org/web/20220509052836/https://economictimes.indiatimes.com/industry/banking/finance/insure/future-enterprises-to-raise-rs-3000-cr-from-insurance-biz-sale-aims-to-pare-debt-avoid-insolvency/articleshow/91415753.cms . live .
  7. News: Our Bureau. 2012-04-30. Aditya Birla Novo to take control of Pantaloon's apparel business. Thehindubusinessline.com. 2014-07-25. 24 January 2016. https://web.archive.org/web/20160124145600/http://www.thehindubusinessline.com/companies/aditya-birla-novo-to-take-control-of-pantaloons-apparel-business/article3370466.ece. live.
  8. News: 2012-09-10. Future Value to be merged with Pantaloon Retail to cut operating cost. India Times. 2014-07-25. 12 August 2014. https://web.archive.org/web/20140812200752/http://articles.economictimes.indiatimes.com/2012-09-10/news/33737171_1_big-bazaar-pril-kb-s-fair-price. live.
  9. News: 2015-05-05 . Kishore Biyani's Future group acquires Bharti Retail in an all-stock deal valued at Rs 500 crore . The Economic Times . 2023-05-21 . 0013-0389 . 21 May 2023 . https://web.archive.org/web/20230521232922/https://economictimes.indiatimes.com/industry/services/retail/kishore-biyanis-future-group-acquires-bharti-retail-in-an-all-stock-deal-valued-at-rs-500-crore/articleshow/47148446.cms . live .
  10. News: Mallet . Victor . Kazmin . Amy . 2015-05-04 . Bharti Retail and Future Group to merge . Financial Times . 2023-05-21 . 21 May 2023 . https://web.archive.org/web/20230521232922/https://www.ft.com/content/984d0c34-f25b-11e4-892a-00144feab7de . live .
  11. Web site: 2015-05-04 . Future Group's retail business to merge with Bharti Retail . 2023-05-21 . Deccan Herald . en . 21 May 2023 . https://web.archive.org/web/20230521232933/https://www.deccanherald.com/content/475575/future-groups-retail-business-merge.html . live .
  12. News: Amazon to acquire 49% stake in Kishore Biyani's Future Coupons; to get a minority stake in Future Retail. en. Business Today. 27 December 2021. 27 December 2021. https://web.archive.org/web/20211227083842/https://www.businesstoday.in/latest/corporate/story/amazon-49-pc-stake-kishore-biyani-future-coupons-minority-future-retail-225082-2019-08-23. live.
  13. Web site: India's Reliance Retail to acquire Future Group's retail, wholesale, and logistics businesses for $3.4 billion. 2020-08-29. TechCrunch. en-US.
  14. News: Rai . Saritha . Sanjai . P.R. . How Ambani Outfoxed Amazon in a $3.4 Billion Deal Dispute . 21 June 2022 . . 9 March 2022 . en . 30 March 2022 . https://web.archive.org/web/20220330025719/https://www.bloomberg.com/news/articles/2022-03-09/how-ambani-outfoxed-amazon-in-a-3-4-billion-deal-dispute . live .
  15. Web site: Amazon wins Supreme Court case restraining merger between Future and Reliance. TheEconomicTimes. en-US. 1 October 2021. 25 September 2021. https://web.archive.org/web/20210925042333/https://economictimes.indiatimes.com/industry/services/retail/future-reliance-deal-amazon-wins-supreme-court-case/articleshow/85091208.cms. live.
  16. News: 23 December 2021. Explained: Why CCI withdrew approval for Amazon's investment in Future Group. en. The Indian Express. 27 December 2021. 27 December 2021. https://web.archive.org/web/20211227085402/https://indianexpress.com/article/explained/explained-why-cci-withdrew-approval-for-amazons-investment-in-future-group-7678959/. live.
  17. Web site: Future Group Businesses as mentioned in its official website . 23 November 2011 . 10 October 2018 . https://web.archive.org/web/20181010063241/http://futuregroup.in/businesses/retail-finance-services.html . dead .
  18. News: Future Group to steer Heritage's retail business. The Hindu. 8 November 2016. 19 August 2020. en. 14 March 2024. https://web.archive.org/web/20240314105654/https://www.thehindu.com/news/cities/Hyderabad/Future-Group-to-steer-Heritage%E2%80%99s-retail-business/article16439512.ece. live.
  19. Web site: Fanzart partners with Future Group's HomeTown Stores. 2022-06-21. retail4growth.com. 16 April 2021. https://web.archive.org/web/20210416212038/https://www.retail4growth.com/news/fanzart-partners-with-future-groups-hometown-stores-4478. live.
  20. News: Big Bazaar to invest Rs. 600 crore on expansion. Reporter. Corporate. The Hindu. 2017-02-26. en. 14 March 2024. https://web.archive.org/web/20240314105711/https://www.thehindu.com/business/Big-Bazaar-to-invest-Rs.-600-crore-on-expansion/article16258263.ece. live.
  21. News: Future Retail buys Heritage Foods's retail business. pilla. vishwanath. Live Mint. 2016-11-07. en. 8 May 2018. https://web.archive.org/web/20180508185821/https://www.livemint.com/Industry/ImeCeMhr1dyJi0ojyipjLL/Future-Retail-to-acquire-retail-and-allied-business-of-Herit.html. live.
  22. Web site: Future Consumer Limited. futureconsumer.in. 2020-01-23. 2 December 2019. https://web.archive.org/web/20191202095042/https://futureconsumer.in/. live.

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