Amazon And Walmart Set High Expectations In Retail Sector
Amazon and Walmart set high expectations from India’s retail sector, competition will increase in the sector. The acquisition of much of the Future Group’s business by Mukesh Ambani-controlled Reliance Industries Ltd (RIL) will significantly increase competition in the country’s retail sector. The reason for this is that two major retail giants of America have high expectations from India.
On one hand, Amazon Inc. has promised to invest $ 550 million (about Rs 38,500 crore) in India. On the other hand, two years ago, Walmart acquired a majority stake in the online marketplace Flipkart for $ 1,600 million (about Rs 1.1 lakh crore). The shadow of this deal is also going to be seen on the agreement between Future Group and Amazon.
In August last year, Amazon bought 1.3 percent of Future Retail through a 50 percent stake in Future Coupons Limited. Through this deal, Amazon got the facility to buy a stake in Future Retail after three years and within 10 years. This relationship between Future Group and Amazon was strengthened when Amazon became an online partner for Future Retail stores in January this year.
Significantly, retail business accounts for about a quarter of RIL’s total revenue. In the annual general meeting this year, the company’s chairman Mukesh Ambani had said that the company is looking for a strategic partner in the retail business. The company may also bring an IPO within the next five years.
Regarding the latest deal, Reliance Retail Ventures Limited (RRVL) director Isha Ambani said that the Future Group has played a key role in the growth and expansion of organized retail in the country. Through this deal we will help preserve the Future Group’s business ecosystem.
How will the deal be
Future Retail, Future Lifestyle Fashions, Future Consumer, Future Supply Chain, Future Market Networks will merge with Future Enterprises Limited (FEL) – Big Bazaar, FBB, Foodhall, EasyDay, Nilgiris, Central, Brand Factory, Heritage Fresh and WHSmith The stores will now be part of Reliance Retail & Fashion Lifestyle Limited (RRFLL), a subsidiary arm of Reliance Retail Ventures Limited (RRVL). Future Group’s financial and insurance businesses are not part of the deal.
Such was the journey of the Future Group
In 1987, he started the formal trouser brand named Pentaloons. In 1991, launched a denim brand named Bayer. The same year Pantaloon Fashions India Limited was established. In 1992, the company brought IPO. Pantaloon’s first modern store opened in Kolkata in 1997. Big Bazaar was launched in 2001, Food Bazaar in 2002 and Central format in 2004.
In 2006, the company launched a separate format called Home Town in the jewelry store and home building area named Navaras inside Big Bazaar. The company started Foodhall in 2012, the same year home delivery service in Mumbai. In 2014, the company tied up with Amazon.
