Reliance to Secure Future Group's Units for $3.4 Billion

By siliconindia  |  Monday, 31 August 2020, 12:16:21 PM IST

Reliance to Secure Future Group's Units for $3.4 Billion
Reliance Industries intends to acquire most of the second largest brick-and-mortar retailer. The company has initiated this move to expand its business position in the country. 
Reliance has signed an agreement with Future Group. According to the agreement, Reliance would acquire Future Group's retail and wholesale business, and its logistics and warehousing business for about 3.4 billion. This acquisition would help Reliance Retail own one-third of the bricks-and-mortar stores in India's modern retail sector. 
The company's announcement would further complicate the future of Amazon and Flipkart in India. In India, E-commerce still accounts for just three percent of all retail sales. According to consultancy firm BCG and local trade group Retailers’ Association India, the country's retail market is estimated to inflate to $1.3 trillion by 2025, this would be a rise from $700 billion last year
Amazon has also invested in Future Group's business. It has invested about $6.5 billion in its India business. Alongside, Amazon had also signed a deal with Future Group to aid the Indian firm sell online. 
 In a statement, Isha Ambani, Director, Reliance Retail states, “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 has played an important role in the evolution of modern retail in India.” 
She adds, “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.” 

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