Future Group Chairman, Kishore Biyani has resigned from the post of Managing Director of Future Retail Ltd as part of realignment of the group’s business.
Besides this, Rakesh Biyani has also resigned from the post of Joint Managing Director and Director of the company.
This is a restructuring to execute the merger Bharti Retail with the company announced last year.
The resignations were effective from May 1, 2016, Future Retail said in a BSE filing.
However, Kishore Biyani would continue to hold office as Non-Executive director of Future Retail Ltd, the BSE filing read.
In May last year, Future group agreed to merge its retail business with rival Bharti Retail in an all-stock deal worth Rs 750 crore to create one of the biggest supermarket chains with a turnover of Rs 15,000 crore .
The two-tier deal also involved merger of their respective retail infrastructure business into Future Retail, thus, creating two separate companies — one the front-end retail and another for infrastructure activities.
The first will own all retail formats including Big Bazaar, EasyDay, eZone and HomeTown under Future Retail, which is already listed. The second one will be Future Enterprises that will house all the backend operations, logistics businesses and non-core assets.
Bharti Retail will get 9 per cent each in both these companies and will also hold ordinary convertible debentures worth Rs 250 crore.