Future Group gets new lease of life as Reliance Retail places large orders ahead of Republic Day sale event

30-12-2020

The Future Group has got a new lease of life and is reopening its offices, hiring top management executives across formats after its deal with Reliance Retail. The retail chain operator had trimmed its operations due to a severe cash crunch amid the Covid-19 led nation-wide lockdown. In an email to employees, Future Group founder Kishore Biyani said the group�s fast-moving consumer goods firm, Future Consumer, and apparel manufacturing company Future Enterprises have received large orders from Reliance Retail and is focusing on its Republic Day sale event . "We are also conceptualising two new brands that will offer products in multiple categories within fashion and FMCG. There is a lot of work that has been going on with these brands and you will see them come alive in stores by March," the Economic Times quoted Biyani as saying in his first communication to employees, after the Covid-led lockdown forced him to sell all the retail assets to Reliance Industries. Reliance Retail, a unit of Reliance Industries, agreed to buy the retail assets of the Future Group on a slump sale basis for about Rs 25,000 crore, it was announced in August. The deal is yet to be closed. The Competition Commission of India has already approved the deal, which also requires clearance from the Sebi and the NCLT, in addition to NOCs from creditors and minority shareholders. Meanwhile, Amazon, which owns a 49% stake in Future Coupons, a Future Group holding company, has won a stay on the deal from the Singapore International Arbitration Centre last month, and has asked Indian regulators to consider the interim order before clearing the transaction. As per the Reliance deal, after its completion, Future Enterprise would have the residual business of consumer products and textiles manufacturing, where Reliance would invest for a minority stake as well as have a long-term sourcing arrangement.