The tiff between Amazon and Future Retail Group is turning dirtier.
The US based e-commerce giant is now looking to gain control of 100 per cent of Future Retail Ltd. (FRL).
For this, Amazon is attempting to control the majority equity in FRL.
Read on to find out all the details!
Amazon Looking To Control Assets Of Future Group Worth 30,000 Crores
Amazon is looking at an investment of Rs. 1431 crore, to control the assets of the Future Group which are worth Rs. 30,000 crore.
The investment exposure of Amazon will be limited to Rs. 1431 crore in the Future Coupons Ltd (FCL) only. The entire Future Group’s assets are worth more than Rs. 30,000, which includes retail and wholesale trade, logistics and warehousing, and FMCG outsourcing businesses.
Additionally, the employee count at the Future Group is about 50,000.
Also, the unpaid debts from the Future Group’s accounts are in more than Rs. 18,000 crore from banks and financial institutions. Suppliers and vendors are also exposed to about Rs. 7500 crore towards unpaid bills from Future Group’s accounts.
COVID-19 Pandemic Impacted Future Group; Amazon Opposed Partnership With Reliance
The coronavirus pandemic and the lockdown induced therefore have both impacted the Future Group severely.
The situation was not very good even before the lockdown as the physical retail of Future Group business faced immense loss due to reduction in sales and revenues.
As per reports, the Future Group defaulted in payment of around Rs. 10,000 crores and more to financial institutions and lenders, vendors and suppliers, and to landlords as well.
Employees also had to bear the brunt of the worsening conditions in the form of pay cuts and salary delays and incentives. As per reports, Amazon was made aware of this and despite many discussions, they werent able to come up with any working option.
We all also know about the Reliance buying off Future Group, which again was vehemently opposed by Amazon.
This is still a developing story and we’ll keep you informed as we get more updates!
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