Kishore Biyani Future Retail Ltd
and Bharti Retail Ltd have decided to combine their retail operations to create
Rs 15000 crore companies in a move that accelerates the consolidation of India’s
organized retail trade. Bharti Retail will get a 10% stake in the combined
entity. Future Retail is valued at Rs 5000 crore currently.
The combined company will be
demerged into two companies one which will be the front end will retain the
name Future Retail and will have 570 stores and a presence in multiple retail
formats across 243 cities. The second will be back end, investments and Infrastructure
Company and will be listed separately as Future Enterprises Ltd.
Bharti Retail has 203 Easy Day
stores currently which generates close to Rs 2000 crore in revenues whereas
Future Retail has 300 stores and revenues to close to Rs 13000 crore. Bharti
Easy Day retail brand will be retained. Future retail has about Rs 1200 crore
debt and Future infrastructure has close to Rs 3500 crore of debt in the books.
The company is looking to have 4000
supermarket or small format stores in India by 2021. Currently it has close to
450 small stores. Shareholders of both Bharti Retail and Future Retail would
hold shares in the two new companies. Future retail operates around 350 stores
in different parts of the country spread over 11 million feet of retail space.
Bharti retail currently operates a network of over stores in multiple formats
across 114 cities.
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