Reliance Retail to acquire retail & wholesale business and the logistics & warehousing business of the Future Group

 

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Mumbai, 29th August 2020: Reliance Retail Ventures Limited (RRVL), subsidiary of
Reliance Industries Limited, today announced that it is acquiring the Retail &
Wholesale Business and the Logistics & Warehousing Business from the Future
Group as going concerns on a slump sale basis for lumpsum aggregate consideration
of INR 24,713 crore, subject to adjustments as set-out in the composite scheme of
arrangement (Scheme).

The above acquisition is being done as part of the Scheme in which Future Group is
merging certain companies carrying on the aforesaid businesses into Future
Enterprises Limited (FEL). As a part of the same Scheme:

  • the Retail & Wholesale Undertaking is being transferred to Reliance Retail and
    Fashion Lifestyle Limited (RRFLL), a wholly-owned subsidiary of RRVL;
  • the Logistics & Warehousing Undertaking is being transferred to RRVL; and
  • RRFLL also proposes to invest:
  1. (INR 1,200 crore in the preferential issue of equity shares of FEL to acquire 6.09
    % of post-merger equity; and
  2. INR 400 crore in a preferential issue of equity warrants which, upon conversion
    and payment of balance 75% of the issue price, will result in RRFLL acquiring
    further 7.05% of FEL.

Ms. Isha Ambani, Director, 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 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. We are committed to
continue providing value to our consumers across the country.”

The acquisition of the retail, wholesale and supply chain business of the Future Group
complements and makes a strong strategic fit into Reliance’s retail business. This will
help Reliance retail to accelerate providing support to millions of small merchants in
increasing their competitiveness and enhance their income during these challenging
times.

Reliance Retail Ventures Limited (RRVL)

The Future Group, headquartered in Mumbai, is famous for having a significant prominence in Indian retail and fashion sectors, with lifestyle stores like Brand Factory, Central, etc, popular supermarket chains like Big Bazaar and Food Bazaar. It has more than 1,300 stores across the country.

Future Group’s portfolio composition in apparel, general merchandise and own FMCG
brands will allow for a wider offering to its customers. This acquisition is subject to SEBI, CCI, NCLT, shareholders, creditors and other requisite approvals.

About Reliance Retail Ventures Limited

RRVL is a subsidiary of Reliance Industries Limited, carrying on the Consumer Supply
Chain Business and Consumer Retail Business through its subsidiaries. RRVL
reported a consolidated Turnover of INR 162,936 crore and net profit of INR 5,448
crore for the year ended March 31, 2020.

About Reliance Industries Limited (RIL)

RIL is India’s largest private sector company, with a consolidated turnover of INR
659,205 crore ($87.1 billion), cash profit of INR 71,446 crore ($9.4 billion), and net
profit of INR 39,880 crore ($5.3 billion) for the year ended March 31, 2020.
RIL’s activities span hydrocarbon exploration and production, petroleum refining and
marketing, petrochemicals, retail and digital services. RIL is the top-most ranked
company from India to feature in Fortune’s Global 500 list of ‘World’s Largest
Companies’ – currently ranking 96th . The company stands 71st in the ‘Forbes Global
2000’ rankings for 2019 – top-most among Indian companies. It ranks 10th among
LinkedIn’s ‘The Best Companies to Work For In India’ (2019).