Reliance- Future group analysis

The Retail
Saga -
FUTURE GROUP - RIL Vs AMAZON
MIB 2020-2022
1

OUR
TEAM
Varun Gola Yashi Pandey Khyati Bhardwaj Manpreet kaur
Nayan
Kumar
MIB 2020-2022
2

MIB 2020-2022
Reliance Retail Ventures Limited is an Indian retail company, subsidiary company of Reliance
Industries Limited.
Industry-Retail
Founded-2006; 14 years ago
Founder-Mukesh Ambani
Headquarters-Mumbai, India
Area served-Worldwide
Key people-Mukesh Ambani (chairman)
Revenue-₹1.62 trillion (US$23 billion) (2019)
Owner-RIL (85.12%)
Vanishree Commercials (4.7%)
General Atlantic (0.84%)
Silver Lake (1.8%)
Infotel Infocomm (0.6%)
TPG Capital (0.4%)
GIC (1.22%)
ADIA (1.2%)
Public Investment Fund (2.04%)
5

MIB 2020-2022
Future Group is an Indian conglomerate company. The company is known for having a significant prominence in
Indian retail and fashion sectors, with popular supermarket chains like Big Bazaar and Food Bazaar, lifestyle
stores like Brand Factory, Central, etc.
Industry-Retailing,Insurance,
Logistics,Media,
Founded-2013 7 years ago
Founder-kishore Biyani (CEO)
Net income-₹100,060.18 crore (US$14 billion) as of March 2013
Headquarters-Mumbai, Maharashtra, India
Parent-Reliance Industries Limited
Divisions-Future Retail Limited
Future Lifestyle Fashion Limited
Future Consumer Enterprise Limited
Future Innoversity Limited
Future Supply Chains Limited
Future Brands Limited
6

ABOUT
THE
CASE
October 2020
MIB 2020-2022
Amazon indirectly
buys a 3.6% stake in Future Retail
by acquiring 49% stake in Future Coupons
August 2019
March 2020
Kishore Biyani writes
to Amazon India, saying that the
pandemic had led to a significant
deterioration of Future Retail’s market
capitalisation
August 2020
Mukesh Ambani's Reliance Retail said it will acquire
the retail, wholesale, logistics, and warehousing operations
of Future Group for Rs24,713 crore
Amazon sends a legal notice to
Future Group, alleging the Indian retailer
breached the terms of its contract.
Amazon gets an interim stay on Future Group's deal
with Reliance from an arbitrator in Singapore and Reliance retail
says its deal with future group is fully legal under the Indian law.
October 2020
7

MIB 2020-2022
RIL FUTURE VISION
Reliance would have access to 1800 Stores across India
8

MIB 2020-2022
Grocery
55.8%
Fashion and Lifestyle
27.9%
Consumer Electronics
16.3%
Access to close to 1,800 stores.
The retail and wholesale undertaking
of Future Group will be transferred to
(RRFLL).
The logistics and warehousing
undertaking will be transferred to
RRVL directly.
Booster Reliance Retail.
Future Retail acquisition will add to
that with Biyani’s loyal customer
base with 351 million footfalls – Big
Bazaar alone saw annual footfalls of
244 million (as of FY19).
High margin
Source:-BI India/BOB Capital Markets report
10

"The deal was aimed at building the retail business together.
Amazon was to bring in technology and Future supply chain efficiencies
and inventory. The stores are to be used as fulfilment centres.
The aim was to do over one lakh deliveries a day from Big Bazar Stores.
MIB 2020-2022 11

MIB 2020-2022
AMAZON FUTURE GROUP DEAL
12

MIB 2020-2022
AMAZON FUTURE GROUP DEAL
14

The Reliance-Future Group deal has the potential to help Reliance almost double its
footprint as India's largest retailer.
India's Future Retail Ltd (FRL) will go into liquidation if its deal to sell assets to
Reliance Industries fails.
That would affect the livelihoods of more than 29,000 employees of the company.
MIB 2020-2022
What if Deal is not accomplished ?
15

In this context, the Delhi High Court's ruling in the case will be crucial.
The court is continuing to hear arguments by Future Retail Limited (FRL) and Amazon
on the former's plea seeking to restrain,
The US e-commerce company from approaching regulatory bodies against the
retailer's deal with Reliance's retail arm.
19

Economics Times https://economictimes.indiatimes.com/industry/services/retail/a-lot-at-stake-in-amazon-
reliance-fight-over-future/articleshow/78879604.cms?from=mdr[Published on Oct 27, 2020]
Quartz India https://qz.com/india/1922477/why-are-bezos-amazon-ambanis-reliance-at-war-for-future-
retail[Published on October 29, 2020]
Business Standard https://www.business-standard.com/article/companies/e-commerce-giant-amazon-
buys-49-stake-in-kishore-biyani-s-future-coupons-119082300058_1.html [Published on Jan17, 2020]
Business Todayhttps://www.businesstoday.in/current/corporate/was-amazon really
interestedfuturegroup/story/420081.html#:~:text=Amazon%20picked%20up%20a%201.3,supply%20chain%
20efficiencies%20and%20inventory.[Published on Nov 25, 2020]
Livemint https://www.livemint.com/companies/news/future-group-reliance-retail-deal-approved-by-cci-
11605873964170.html[Published on 25 Nov 2020]
Deccan Herald https://www.deccanherald.com/business/the-retail-saga-future-ril-vs-amazon-battle-
explained-909863.html [Published on Nov 01 2020]
Business Insider https://www.businessinsider.in/retail/news/heres-why-reliance-retail-with-almost-12000-
stores-bought-future-retail-which-has-just-1500-outlets/articleshow/77843965.cms [Published on Sep 1,
2020]
MIB 2020-2022
20

Reliance- Future group analysis

More Related Content

What's hot (20)

Similar to Reliance- Future group analysis (20)

Recently uploaded (20)

Reliance- Future group analysis