After a spree of foreign investments in the petro to tech conglomerate Reliance, it recently acquired Future Group’s retail, wholesale, logistic, and warehousing business, which include the likes of Big Bazaar, FBB, Brand Factory, etc for ~₹24,713 crores. With this takeover, Reliance will dominate the retail business in India, which is estimated at $89 billion. Let’s take a look at how the landscape of the industry has shifted.
Crux of the Matter
Reliance To Get A ‘Big Bazaar’
Future Group’s decision to sell its retail came when the group ran out of all options to save its retail business from heavy debts and losses. Reliance Industries Limited bought Future Group’s retail, wholesale, logistics, and warehousing business for ~₹24,713 crores. RIL’s Subsidiary Reliance Retail Venture Limited (RRVL) will takeover logistic and warehousing business and Reliance Retail and Fashion Lifestyle Limited (RRFLL), a subsidiary of RRVL will takeover retail and wholesale business.
- Kishore Biyani (CEO) formally founded Future Group in 2013.
- It is divided into various subsidiaries such as Future Retail Limited, Future Lifestyle Fashion Limited, Future Consumer Enterprise Limited, etc.
- Biyani in May 2012 sold 50.1% stake of its fashion chain Pantaloons to Aditya Birla Group to reduce the debt of ~₹8,000 crores.
- In August 2020, Reliance Retail acquired its retail, wholesale, logistics, and warehousing business, which include it larget and India’s pioneer retail brand Big Bazaar, for ~₹24,700 crores.
Short History Of Future Group
- 1987 – Launched pantaloons and incorporated company under the name of Manz Wear Private Ltd.
- 1991 – Changed company’s name to Pantaloon Fashions (India) Limited.
- 1992 – Company came up with Initial Public Offer (IPO) of shares.
- 2001 – Pantaloon Retail launched three Big Bazaar stores in Kolkata, Bangalore, and Hyderabad.
- 2002 – Launched Food Bazaar food chain.
- 2004 – Launched Central mall in Bangalore.
- 2006 – Big Bazaar launched the shopping festival Sabse Sasta Din and Navaras jewelry store within Big Bazaar stores.
- 2007 – Big Bazaar launched its 50th store in Kanpur.
- 2008 – Launched FBB and Big Bazaar and Big Bazaar expanded to 100th store.
- 2010 – A subsidiary of main retail Future Value Retail Limited is formed and future Group launched ‘The Great Indian Shopping Festival’.
- 2013 – Launched India’s largest Logistical Distribution Hub at Nagpur.
- 2015 – Future Retail formed a partnership with Bharti Retail and Patanjali.
- 2018 – Big Bazaar dropped prices of 1,500 everyday items with the tagline ‘Har Din Lowest Price’.
- 2019 – Amazon acquired a 49% stake in Future Coupons.
- Na Tum Jaano Na Hum is a 2002 Indian Hindi-language romantic drama flop film produced by Future Group owner Kishore Biyani. Despite having a cast of Saif Ali Khan, Hrithik Roshan, and Esha Deol; the film was a box office disaster.
- With Dipayan Baishya, Biyani co-authored the book It happened in India: The Story of Pantaloons, Big Bazaar, Central and The Great Indian Consumer. As of 2007, it was the best-selling business book ever published in India, with sales of over 100,000.
- Brand Factory is a chain of retail stores operated by Future Group. It is one of India’s largest discount retail chains and offers a wide range of apparel brands in different categories for men, women, infants, accessories, cosmetics, footwear, sportswear and luggage.