While online marketplaces will have to go back to the drawing board, the move could provide a window of opportunity for brick-and-mortar stores.
Amazon and Future Group are in the final stages of their deal wherein the Jeff Bezos-led company will acquire 9.5 percent stake in FRL as a foreign portfolio investor
Currently, there are 5 million plus registered users on Future Pay.
With a stake in Future Retail, Amazon will have the advantage of being well-spread across India which Walmart does not have right now
At the two-day conclave of India Retail Forum 2018 held on Sep 5 & 6, experts across the spectrum deliberated on the affluence index and retail potential in the country
The underlying theme of this development underscores the importance of having the right blend of brick-and-mortar and online presence in a business where margins, more often than not, can be very thin.
The joint venture will be called Fonterra Future Dairy Partners
Bharti still holds about 3 percent stake in Future Retail via a group entity called Cedar Support Services
The Kishore Biyani-led company is reportedly in advanced discussions to buy Iraya from Athena Life Sciences
Given the series of restructuring steps taken by Kishore Biyani lately, it may take a while for earnings to catch up with the valuation.
Future Group is also looking to sell at least 10 percent of its stake to a global retailer
At a time when American retail giant Walmart has acquired a 77 percent stake for USD 16 billion in a bid to bolster its presence in India, Future Group is looking to sell minority stake to a global investor.
Other associate sponsors of the cash-rich cricketing event include MakeMyTrip, Parle Products, AMFI, Asian Paints, Dream 11, Polycab and Vimal Pan Masala.
Future Group Founder and Chairman Kishore Biyani said in a statement that through Vulcan, the company plans to boost its last mile capabilities and also offer state-of-the-art solutions to its e-commerce and retail clients.
The deal is expected to close in the next few weeks and may include the transfer of Vulcan's workforce to the Future Group as part of the deal, one of the sources said.
The company, which has built an integrated warehouse with a capacity of over 30 crore garments in Nagpur, is betting big on the growing demand from fashion conscious customers and consumers' interest for lifestyle and fashion.
The retail champion said although the next trend is digitisation, but physical and digital are not different as layering of technology over physical is the need of the hour.
Future Group CEO Kishore Biyani said the company aims to open 10,000 Easyday department stores by 2022.
"The Committee of Directors... has issued and allotted 3,500 senior, secured listed, rated, redeemable non- convertible debentures series - IV (NCDs) of Rs 10 lakh each at par for cash aggregating Rs 350 crore to the investors, on private placement basis," FLFL said in a regulatory filing.
Last week, Kishore Biyani-led Future Retail Ltd(FRL)had announced that it would acquire Hypercity that operates 19 large format premium stores in some key cities from the K Raheja group firm Shoppers Stop.
"All discussions at this stage are exploratory in nature. The company keeps on evaluating various possible business associations or transaction at any given time. However, at present, there is neither any legally binding agreement nor any business collaboration or association," Future Retail said in a regulatory filing.
The company had posted a net profit of Rs 70.55 crore during the April-June quarter of the previous fiscal, Future Retail said in a BSE filing.
Future Retail operates 538 Easy Day and Heritage Fresh neighbourhood stores, at present. In an investor's update, the company said that it is looking at operating 4,000 such stores in 3-5 years.
Despite being the poster boy of organized retail, Future Retail’s operational efficiency is nowhere close to that of D-Mart’s.
Future Group will become debt free in less than 4-5 years and has completed the reorganisation of businesses and is working towards strengthening the balance sheet to grow faster.