Kishore Biyani cannot re-enter retail business for 15 yrs post-Reliance-Future deal

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With the acquisition of Future Group, Reliance Retail will now have access to close to 1,800 stores across Future Group stores

Kishore Biyani and his family members cannot re-enter the retail business for the next 15 years as per a non-compete clause after Reliance Industries Ltd acquired Future Group’s retail, wholesale, logistics and warehousing businesses recently, said a news report.

Mukesh Ambani-led RIL’s arm Reliance Retail Ventures Ltd recently acquired Biyani’s Future Group for Rs 24,713 crore to add to its fast growing retail segment and to strengthen e-commerce business to take on competition from Amazon.

According to the deal, Biyani and his close family members cannot operate any retail business. There is an exception of home retailing, where Reliance is yet to enter. The deal is applicable for all existing retail businesses both online and offline, reported The Economic Times quoting sources in the know of the matter.

The former Future Group chief owns Praxis Retail, a separate entity that operates 48 HomeTown outlets which reported Rs 702-crore revenue during the previous financial year. But it is not part of the pact with RIL.

With the acquisition of Future Group, Reliance Retail will now have access to close to 1,800 stores across Future Group's Big Bazaar, FBB, Easyday, Central, Foodhall formats, which are spread in over 420 cities in the country.

"Pleased to provide a home to the renowned formats and brands of Future Group," said Isha Ambani, Director, Reliance Retail, after the buyout announcement.

"With this transaction, we are pleased to provide a home to the renowned formats and brands of Future Group as well as preserve its business ecosystem, which have played an important role in the evolution of modern retail in India. We hope to continue the growth momentum of the retail industry with our unique model of active collaboration with small merchants and kiranas as well as large consumer brands. We are committed to continue providing value to our consumers across the country," said Isha Ambani.

Image credit: Deccan Herald

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