Kishore
Biyani, Future group's founder said
jobs of nearly 50,000 employees were kept into consideration during its
sell-out plans to Reliance Industries NSE 0.26 %, assuring they will continue to be part of the business post
merger as well.
"Our primary objective was to ensure continuity of the
business and the protection of the interests of all our stakeholders, including
employees. The transaction we are entering with Reliance meets this
objective," said Biyani in a mail to employees. "Everyone who is part
of Future Group today will have a role in the future of this business as well."
As part of the agreement, Reliance will take over Future
Group's retail, wholesale, and logistics business to run their stores. The
company hopes the merger will take another 4-5 months to complete due to
approvals. The acquisition gives Reliance Retail sway over a
network of nearly 1,800 stores and brings in Rs 30,000 crore in additional
sales to create a Rs 1.89 lakh crore ($26 billion) retail empire.
"They (Reliance) are aggressively growing their retail
business and will require even more people than those currently engaged in the
business," he added.
After the deal completion, Future Enterprise will have the
residual business of consumer products and textiles manufacturing where
Reliance will invest for a minority stake as well as have a long term sourcing
arrangement. "We will invest in it, grow it, create new brands and
distribution for the products, and also supply to the retail network they
have," said Biyani adding that a 'new Yuga' requires them to start afresh,
rebuilding everything, in a bigger and better way.
Sandip Ginodia , CEO
ALTIUS INVESTECH PVT LTD
We deal in over 60 unlisted companies with 15 years of experience
For latest prices visit : www.abhisheksecurities.com/unlisted.htm / call : 09830271248 .
Email : ginodiasandip1@gmail.com
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