News Article 29-08-2020

Title: Reliance Retail buys Future Group's businesses for ₹24,713 crore

Background: Negotiations on the deal began earlier this year as one of Biyani's holding entities
defaulted on the loan payment.

According to several news reports earlier, Biyani, once the poster boy of India's retail sector, held
several discussions with many other potential investors as well. Various big players like US-based
retail giant Amazon had shown interest in Future Group, but a deal with RIL offered a thorough
solution to Biyani's debt issues.

Summary:

1. Reliance Retail Ventures Ltd (RRVL), subsidiary of Reliance Industries Ltd will acquire the retail and
wholesale business and the logistics and warehousing business from the Future Group.

2. Reliance Retail will now have access to close to 1,800 stores across Future Group's Big Bazaar,
FBB, Easyday, Central, Foodhall formats, which are spread in over 420 cities in India.

3. The retail and wholesale undertaking of Future Group will be transferred to Reliance Retail and
Fashion Lifestyle Limited (RRFLL).

4. The deal terms entail a merger of five listed units of Future Group across grocery, apparel, supply
chain and the consumer business into Future Enterprises Ltd (FEL), which currently manages the
group’s retail back-end infrastructure.

Future Implications:

1. The transaction with the Future Group will bolster Reliance Retail - already the nation’s largest
retailer by the number of stores - in a sector that’s estimated to be worth $1.3 trillion by 2025 from
$700 billion in 2019.

2. The deal will also help the indebted Future Group pare its borrowings.

3. This deal will also enable FEL to focus on the creation of newage brands in the FMCG and fashion
space and expand its reach.The transaction will help FEL to expand with a focussed business model
and a stronger balance sheet

Link: https://www.livemint.com/companies/news/reliance-retail-buys-future-group-s-retail-other-
businesses-for-rs-24-713-cr-11598714386781.html