Mittals of Bharti group are expected to get minority stakes in combined entity or Biyani promoted holding company
The merger of Bharti Retail with Kishore Biyani's Future Group is expected to be a 'win-win' preposition for both the groups.
According to reports, Mittals of Bharti group are expected to get minority stakes in combined entity or Biyani promoted holding company.
"Bharti will get an assured back end play which it needed after it broke away from Walmart. Kishore Biyani will get a good footfold in northern India," said Rachna Nath, executive director at audit and consulting firm PwC.
"It is a good opportunity for Future group from front end perspective," said Nath.
Bharti ended its joint venture with US-based Walmart in October 2013. Some say Bharti has found good financial partner with Biyani after it broke away from Walmart earlier.
"Bharti had to find out somebody as FDI (foreign direct investment) is not happening. Since they were making losses of Rs 1 crore a day, they have to do something to stop that," said a former executive with Bharti Retail.
Bharti Retail posted a net loss of Rs 314 crore on sales of Rs 2748 crore for 15 months ending Rs 2748 crore. It runs 15 Easyday Hypermarkets and 200 supermarkets.
Arvind Singhal, chairman of Technopak said it is a good thing that both players are looking at consolidation. "Supermarkets are fragmented. Both run different formats in different regions-Future is strong in West and North. Bharti is strong in North. Hence the merged entity will get strong footprint nationally," Singhal said.
He added that the merged entity will drive synergies and advantage in terms of logistics and supply chain. Future has three main entities in retail-Future Retail which runs hypermarkets and supermarkets, Future Lifestyle Fashions and Future Consumer Enterprise.
Future Consumer Enterprise acquired Nilgiris chain in South from PE firm Actis for Rs 300 crore. Aditya Birla group is also merging Madura Garments, Aditya Birla Retail with Pantaloons Fashions and looking to sell 20 per cent stake in the combined entity.
Aditya Birla Group earlier acquired Pantaloons from Future group for Rs 1600 crore.
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Mittals of Bharti group are expected to get minority stakes in combined entity or Biyani promoted holding company
The merger of Bharti Retail with Kishore Biyani's Future Group is expected to be a 'win-win' preposition for both the groups.The merger of Bharti Retail with Kishore Biyani's Future Group is expected to be a 'win-win' preposition for both the groups.
According to reports, Mittals of Bharti group are expected to get minority stakes in combined entity or Biyani promoted holding company.
"Bharti will get an assured back end play which it needed after it broke away from Walmart. Kishore Biyani will get a good footfold in northern India," said Rachna Nath, executive director at audit and consulting firm PwC.
"It is a good opportunity for Future group from front end perspective," said Nath.
Bharti ended its joint venture with US-based Walmart in October 2013. Some say Bharti has found good financial partner with Biyani after it broke away from Walmart earlier.
"Bharti had to find out somebody as FDI (foreign direct investment) is not happening. Since they were making losses of Rs 1 crore a day, they have to do something to stop that," said a former executive with Bharti Retail.
Bharti Retail posted a net loss of Rs 314 crore on sales of Rs 2748 crore for 15 months ending Rs 2748 crore. It runs 15 Easyday Hypermarkets and 200 supermarkets.
Arvind Singhal, chairman of Technopak said it is a good thing that both players are looking at consolidation. "Supermarkets are fragmented. Both run different formats in different regions-Future is strong in West and North. Bharti is strong in North. Hence the merged entity will get strong footprint nationally," Singhal said.
He added that the merged entity will drive synergies and advantage in terms of logistics and supply chain. Future has three main entities in retail-Future Retail which runs hypermarkets and supermarkets, Future Lifestyle Fashions and Future Consumer Enterprise.
Future Consumer Enterprise acquired Nilgiris chain in South from PE firm Actis for Rs 300 crore. Aditya Birla group is also merging Madura Garments, Aditya Birla Retail with Pantaloons Fashions and looking to sell 20 per cent stake in the combined entity.
Aditya Birla Group earlier acquired Pantaloons from Future group for Rs 1600 crore.
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