'Future - Bharati Retail' merge to compete with future
Updated: May 05, 2015 05:58:10pm
New Delhi, May 5 (KNN) Kishore Biyani owned Future Retail will consolidation and realignment of its retail operations with Bharti Retail Ltd.
“Bharti Retail’s strengths and network complement perfectly with that of Future Retail,” Kishore Biyani, Founder and Group CEO, Future Group, said in a statement.
Only a day back the Aditya Birla Group announced a mega merger of its various apparel Brands under Aditya Birla Nuvo Limited with the group owned Lifestyle Company. With the FDI in multi-brand retail still not a reality, a consolidation amongst the Indian players has long been on the anvil, according to some industry expert.
However, in the opinion of many observers, these mega mergers have been planned to stave off the threats from the fledging online retail sector. With the Indian Flipkarts and Snapdeals already eating into their markets and Government starting consultations to open the door for e- retailing, India retail giants have to consolidate their operations for existence.
The Future group - Bharati retail merger would combine the operations of both companies and create a company with 570 retail stores in 243 stores with operational space of over 18.5 million square feet. It will operate 203 Big Bazaar and ‘easyday’ hypermarkets, 197 Food Bazaar and ‘easyday’ supermarkets, and 171 other stores comprising Home Town, eZone, FBB and Foodhall.
The consolidation would result in better sourcing terms from consolidation of buying functions across all categories. Also, there will be a significant reduction in interest cost as overall debt will be around Rs 1,000 crore.
“The partnership offers compelling synergies in terms of reach, efficiency and experience to build a truly world-class retail network to serve the Indian consumer,” Rajan Bharti Mittal, Vice Chairman, Bharti Enterprises said in a statement. (KNN/DB)
“Bharti Retail’s strengths and network complement perfectly with that of Future Retail,” Kishore Biyani, Founder and Group CEO, Future Group, said in a statement.
Only a day back the Aditya Birla Group announced a mega merger of its various apparel Brands under Aditya Birla Nuvo Limited with the group owned Lifestyle Company. With the FDI in multi-brand retail still not a reality, a consolidation amongst the Indian players has long been on the anvil, according to some industry expert.
However, in the opinion of many observers, these mega mergers have been planned to stave off the threats from the fledging online retail sector. With the Indian Flipkarts and Snapdeals already eating into their markets and Government starting consultations to open the door for e- retailing, India retail giants have to consolidate their operations for existence.
The Future group - Bharati retail merger would combine the operations of both companies and create a company with 570 retail stores in 243 stores with operational space of over 18.5 million square feet. It will operate 203 Big Bazaar and ‘easyday’ hypermarkets, 197 Food Bazaar and ‘easyday’ supermarkets, and 171 other stores comprising Home Town, eZone, FBB and Foodhall.
The consolidation would result in better sourcing terms from consolidation of buying functions across all categories. Also, there will be a significant reduction in interest cost as overall debt will be around Rs 1,000 crore.
“The partnership offers compelling synergies in terms of reach, efficiency and experience to build a truly world-class retail network to serve the Indian consumer,” Rajan Bharti Mittal, Vice Chairman, Bharti Enterprises said in a statement. (KNN/DB)
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