Reliance Will Buy Big Bazaar But Brand Names Will Not Be Changed; Will Reliance Become India’s #1 Retail?
We have covered detailed stories, unfolding in the acquirement deal between Mukesh Ambani’s Reliance Industries Ltd (RIL) and Kishore Biyani’s Future Group.
Some days back, these companies were in the final stage of RIL buying a controlling stake in Future Group’s retail business, along with other details.
We have follow up on the same.
RIL will not Change Names of Future Group’s Brands, Post Acquirement
Until last time, there was an alleged delay in the entire process due to lack of consensus over the valuation of Future Retail.
Now that all of it is sort, RIL eyes retaining Future’s retailing brands like:
- Big Bazaar
- Brand Factory, and
However, the conglomerate giant doesn’t intend to change the existing corporate brand names of Biyani’s established retail stores, until their stocks wear away.
According to sources, “The recall value of corporate brands like Big Bazaar, FBB, Central and Easyday is high in some places. It is likely that Reliance will continue with the brands for sometime”.
Role of RRVL and JioMart
RIL’s retailing business is held by its subsidiary Reliance Retail Ventures Ltd (RRVL), whose current valuation is Rs 23,000-25,000 crore.
Speaking of this, RIL plans to acquire Future Retail’s retailing brand through RRVL.
Also Biyani’s Future Group will add to network size of RRVL, in terms of brands, logistics and warehousing facilities.
Reliance is now fully prepared to take over the debts of Future Group (Rs 13,000 crore) and the enterprise value includes the debt.