Kishore Biyani and his family members are not allowed to re-enter the retail segment for the coming 15 years as part of a non-compete clause after Mukesh Ambani-led Reliance Industries recently acquired Future Group's retail, wholesale, logistics and warehousing businesses.
The cap is both on the online and offline sectors. However, Biyani may operate the home retailing sector through HomeTown stores. Biyani owns Praxis Retail that runs about 48 HomeTown stores. The entity clocked in a revenue of Rs 702 crore in the last fiscal year.
"As per the deal contours, neither Biyani nor his immediate family members can operate in any retail segment. There is, however, an exception, of home retailing, where Reliance has no presence so far. The deal is applicable for all existing retail businesses both
online and offline," The Economic Times reported citing an unidentified source.
Meanwhile, Reliance Industries last Saturday announced acquisition of Future Group for Rs 24,713 crore to boost its retail business. "Reliance Retail Ventures Ltd (RRVL), subsidiary of Reliance Industries, will acquire the retail and wholesale business and the logistics and warehousing business from the Future Group as going concerns on a slump sale basis for lumpsum aggregate consideration of Rs 24,713 crore," the company had said in a statement.
Through the deal, Reliance will acquire Future Retail that owns the BigBazaar that sells everything from groceries to cosmetics and apparel, and Future Lifestyle Fashions that operates fashion discount chain Brand Factory. While Reliance will takeover Future Consumer, which sells food, home and personal care products, Future Group's financial and insurance business is not part of the deal.
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