‘Future Retail’, part of Future Group led by Kishore Biyani announced its merger with ‘Bharti Retail’, part of Bharti Enterprises led by Sunil Mittal. For ease of understanding, the former is the group that runs Big Bazaar whereas latter operates ‘Easyday’ supermarkets and convenience stores.
The move will create a retail chain with 570 stores in 243 cities and will help Future Group take on competition from e-tailers.
Bharti will get Rs 500 crore worth stocks, representing 9-10 per cent equity in both the companies and Rs 250 crore in the form of optionally convertible debentures. Future Group promoters will hold 46-47 per cent stake each in the two new entities and the rest will be held by public shareholders. Both the entities will be listed on the bourses.
Future Group CEO Kishore Biyani said, “We are merging our retail businesses to create two separate firms. The combined retail entity will have a total turnover of Rs 15,000 crore. There is no overlap in our store presence. We did not have the smaller format stores that Bharti Retail has”
The combined entity will operate 203 Big Bazaar and ‘Easyday’ hypermarkets, 197 Food Bazaar and ‘Easyday’ supermarkets and 171 other stores comprising of Home Town, eZone, FBB and Foodhall. While in the value-format, post-merger Future Retail will operate 400 stores.