Future Group firms have started getting large orders from Reliance Industries, its CEO Kishore Biyani said in an email to his employees on Tuesday. The group firms Future Consumer and Future Enterprises have recently received orders from Reliance Industries.
“We have received a large order from Reliance as well in Future Consumer and in Future Enterprises,” Biyani said in the email.
This will be a big support for the cash-strapped future group firms before the completion of Rs 24,713 crore buyout of the country’s second-largest retailer by Reliance Industries’ arm.
On the future course of action, he said the group is conceptualising two new brands that will offer products in multiple categories in fashion and FMCG.
“There is a lot of work that has been going on with these brands and you will see them come alive in stores by March. The new brands will offer products in multiple categories within fashion and FMCG,” Biyani wrote to employees. This is his first email to company employees after he sold all his retail assets to Reliance Industries.
Mukesh Ambani-led Reliance Retail, a unit of Reliance Industries, agreed to buy the retail assets of the Future Group on a slump sale basis for about 25,000 crore, it was announced in August 2020. The deal has yet to be closed.
While talking about the current year, Biyani said the COVID situation has interrupted everything. “Now, things are steadily coming back to their usual rhythm. A new year gives us an opportunity to start afresh,” he said. “I am starting the year 2021 with a fresh mind and the determination to get back the rhythm and normalcy in every sphere of life and business”.
“As you are aware, we have started opening new stores as well. A new Big Bazaar opened in Palassio Mall in Lucknow in December and has received very encouraging response from customers. One more Big Bazaar store is scheduled to open in Mokama in Bihar in January,” Biyani wrote in the email.
E-commerce major Amazon has raised objections over the deal.
Amazon had dragged Future Group to arbitration at Singapore International Arbitration Centre (SIAC) after a company of the Future Group signed a pact to sell retail, wholesale, logistics and warehousing units to billionaire Mukesh Ambani’s Reliance in August this year.
Continuing their letter fight, Amazon and Future Group have written to market regulator SEBI with contrasting requests over a Rs 24,713 crore buyout of assets of India’s second-largest retailer. Future Group has requested SEBI to expedite the review of the proposed deal and issue a no-objection certificate, while Amazon has urged that the review of the “impugned transaction” be suspended.
Amazon had dragged Future Group to arbitration at Singapore International Arbitration Centre (SIAC) after an indebted Kishore Biyani group firm signed a pact to sell retail, wholesale, logistics and warehousing units to billionaire Mukesh Ambani’s Reliance in August this year.
Future Group firm Future Retail Ltd (FRL) approached the Delhi High Court, which earlier this month upheld Amazon’s right to make representations to statutory authorities against the Future Group-Reliance Retail deal.
However, the court also made several observations indicating that Amazon’s attempt to control FRL through a conflation of agreements it has with an unlisted unit of the Indian company will be violative of the FEMA FDI rules.
The court had also given a go-ahead to the regulatory authorities to decide about the deal in accordance with the rules and regulations.
In its letter, dated December 23, FRL requested SEBI to decide over the NOC (No Objection Certificate) required for the sale of its retail and other businesses “as soon as possible” as any delay would cause loss to the company, its stakeholders and investors.
“In view of the judgment of the Delhi High Court, it is respectfully prayed that SEBI reviews the application submitted for its NOC/ observations on the scheme to the stock exchanges as soon as possible as any further delay on this count would cause irreparable loss not only to FRL and its stakeholders, including lakhs of small investors, but also to other entities and their respective stakeholders and investors, who are involved in the scheme,” it said.
The Securities and Exchange Board of India (SEBI) has to issue an NOC after reviewing the scheme of merger of FRL along with other Future Group companies with RIL’s Reliance Retail Ventures Ltd and Reliance Retail Fashion Lifestyle Ltd.