Reliance Industries to buy Big Bazaar

Indian multinational conglomerates Reliance Industries Ltd. which also own its subsidiary Reliance Retail Ventures Ltd. (RRVL), has recently announced the acquisition of the Future Group, on a slump sale basis, for a lump sum of ₹24,713 crores.

Reliance Industries

Dhirubhai Ambani and Champaklal Damani in collaboration founded a company in the name of Reliance Commercial Corporation in the year 1960. However, in 1965 the partnership ended and from there Dhirubhai continued the polyester business of the firm. In the year 1966, Dhirubhai incorporated the company as Reliance Textiles Engineers Pvt. Ltd. in Maharashtra. The company established a synthetic fabrics mill in the same year at Naroda in Gujarat. Finally, on 8 May 1973, it renamed as Reliance Industries Limited, which we see today. Today Reliance Industries holds major stakes in Oil & Petroleum industry, Telecom industry, Textile industry, Retail Industry and so on.

Future Group

An Indian conglomerate founded by Kishore Biyani in 2013. Future Group is widely eminent in Indian Retail, and fashion sector. Popular brand chains like Big Bazaar, Food Bazaar, Brand Factory, Central, etc. are the product of Future Group. The group also has prominence in integrated foods and FMCG manufacturing sectors.

After the merger

After the acquisition, popular brands like Big Bazaar, fbb, Foodhall, Easyday, Nilgiris, Central and Brand Factory will come to Reliance. Also, certain borrowings and current liabilities related to the logistics and warehousing business will be undertaken by RRFLL and RRVL.

Month: Current Affairs - August, 2020