Future group may buy Aditya Birla’s Retail.

Yes you heard it right. Future group’s Owner Kishore Biyani is in advanced talk to buy Aditya Birla Group’s Retail arm Aditya Birla Retail. Future Group plans to consolidate its position in the supermarket brick and mortar business and this move would help him consolidate groups position.  According to top sources , the two groups got into a discussion last year but had to shelve off their plan due to some valuation issues. Both the groups have resumed their negotiation in this regard and are in final stage to crack the deal.  While the discussions are exploratory , Future group is doing a due diligence for a possible merger or acquisition.  If the deal materialize , this will be their fourth acquisition in last 5 years and would make them the leader in retail chain with Reliance Retail being their close competitor.

The Pole Position

Aditya Birla gourp is the fourth largest retail chain after Future group , Reliance retail and D Mart . The Aditya  Reatail group has more than 500 odd stores covering more than 2 million square feet of retail space .The group registered a gross revenue of Rs 2948 crores  in year 2014-15. The group is backed by High margin brands like Allen Solly and Van Heusen.

The Debt Burden

With the acquisition , group would increase its total debt from 4941 crore to a substantial amount as ARBL in itself have a total debt of 5232 crore in Fy 2014-15.

 

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Futuregroup to raise 300 crore for FMCG business.

Kishore Biyani lead future group is in talk with various strategic investors to rise 300 crore for the FMCG business. As per reports two Belgium based company Verlinvest and Arisaig has decided to invest in the CO in the near future. Both these companies hold 10% of the comapny. Kishore Biyani , the man behind the retail revolution of the country has focused majorly in retail sector in recent years.

The company has recorded a net growth of Rs 447 crore for the quarter ended in September this year . The company has grown by 52% in this quarter which is a good sign for the company. Company’s flagship brands like Sunskrit and Harvest has also shown growth. The group has launched a series of new brands and flour based foods which have been a huge success in recent times.

It will be interesting to see when and where the investment would take place and what will be the future of the company.