According to Two Anonymous person’s sources who claim to be familiar with a deal says to Mint paper that, Mukesh Ambani’s Reliance Industries Ltd. (RIL) is planning to buy the retail assets of Future Group at a price range of Rs.24,000 to 27,000 Crores so that it can raise its status in the retail market that will also include the Groups liabilities.

Kishore Biyani is a pioneer of the retail industry, but in recent years he has accumulated a large amount of debt on future group amounting to Rs.12,778 Crore on 30 September 2019, and the deal of Reliance is coming at this crucial point which would affect his future role in the company that what would it be after this deal.

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Mr. Ambani got the investment of $20 Billion for his Oil-Telecom Conglomerate from his backers like Google and Facebook, and he is using this money to get the upper hand on the Retail Industry of India.

RIL is planning that the five listed entities of Future Group will get merged in Future Enterprises Ltd. (FEL), and, the entities which are going to get merged are Future Retail Ltd, Future Consumer, Future Lifestyle Fashions, Future Supply Chain and Future Market Networks and the merger is to take place before the sale of assets is initiated with a subsidiary of RIL.

The work of FEL is to acquire and develop the Retail Infrastructures and also lease them to the Future Group, and, it is also holding the Group’s investments which are made in its joint ventures and subsidiaries that include textile manufacturing, supply chain, logistics and insurances.

RIL is going to take up the Future Group’s Partnership deals which are made with many foreign brands like the franchise agreement which the Group made with 7-Eleven Inc. to develop and operate 7-Eleven stores in India.

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RIL is also going to acquire these entities of the Future Group like Big Bazaar, FoodHall, Nilgiris, FBB Central, Heritage Foods and Brand Factory.

Reliance Industries Ltd. is running its existing retail operation in around 12,000 stores, including a cash-and-carry wholesale business, in over 6,700 towns and cities, and also in May, it launched JioMart, an online grocery service that has an objective to compete with the rivals like’s local unit and Walmart Inc’s Flipkart in the Indian market. Reliance Retail who also works as the master distributor for Jio connectivity services earned a turnover of $1.63 trillion this year.

The Future Group is not responding to the comments made about this deal, but a spokesperson of RIL said that the company constantly evaluates many opportunities.

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With Warm Regards,

CL Bureau.

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