The future group has a string of retail stores for its consumers all around India. It has slowly and steadily expanded its business by opening new shops and also increasing its portfolio. Reliance has recently acquired the Future Retail group for a whopping Rs 24,713 crores. And now, after acquisition, it has become Reliance Retail.
The investment received by Reliance Retail
After the most recent funding of Rs 1,875 crores from Silver Lake, their total investment sums up to ₹9,375 crores. Silver Lake now has a stake of 2.13% stake in the company and holds high hopes for the future. Now Reliance Retail is evaluated to have a total value of whopping ₹4.285 lakh crores. RR has raised over Rs 18,000 crores since the acquisition.
Mukesh Ambani said, “Silver Lake and its co-investors are valued partners on our journey to transform Indian Retail for the benefit of all Indians. Silver Lake’s additional investment is a strong endorsement of the tremendous potential of Indian Retail and the capabilities of Reliance Retail”. Other investors in the company are KKR and General Atlantic, with a 1.28% and 0.84% stake respectively.
Reliance’s moto behind buying a stake in future group
There are over 2000 future group retail stores across the country. The kind of impact these stores have is enormous. As per some records, the stores have recorded over 600 million visits over the years. Future Group also has its presence online. Millions of people and users interact with the group’s brand and business through various social sites like Future pay.
On acquiring the stake, Reliance said, “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 as going concerns on a slump sale basis for lumpsum aggregate consideration of INR 24,713 crore,”.
Future of this partnership
The partnership between Retail and Future Group is undoubtedly going to be beneficial for the company. They are going to give a tough competition to e-commerce sites like Amazon and Flipkart. With the most probability, the quality of services of the group will also improve.
This will increase the reach of Future Retail to small businesses and thus increase RRVL’s profits. Presently they recorded a complete turnover of Rs 1.62 lakh crore and a net profit of Rs 5,448 crore for the financial year ended March 31, 2020.
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