Jobs Safe Even After Reliance Deal, Kishore Biyani Assures Future Employees

 

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

 

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