India’s Retail King Cousin (Rakesh Biyani) may prepare the way for Biyani’s Re-entry into the Organized Retail Market
Kishore Biyani’s cousin, Rakesh Biyani and the MD of Future Retail could very well pave the way for the Biyani family’s re-entry into the organized or systematized retail sector in India. Moreover, Kishore Biyani and his family have a 15-year non-compete agreement with (RI) Reliance Industries limited as part of its accommodation to sell its retail and wholesale assets to the Reliance Retail ventures for around Rs.24, 700 crore.
According to the Reports, Rajesh Biyani who runs a chain of ethnic wear stores under the brand name of Ethnicity, is the Future Group’s go-to man for fashion retail and has held a variety of posts for retail bodies across the industry but his name has been omitted or strike out from the non-compete agreement.
Besides, Ashni and Avni, Kishore’s daughters have been running operations or functioning for the future consumer and foodhall but after the non-compete agreement between billionaire Mukesh Ambani’s: Reliance Industries Limited (RIL) and Future Group, which has reportedly banned him and his immediate family members from entering the Retail space for a period of 15 years. The Group has been therefore left with businesses that will manufacture and source FMCG and fashion products to supple to Reliance Industries Limited Retail businesses.
Due to the coronavirus (COVID-19) and lockdown, the company sustained around 7,000 crore revenue loss and it became almost impossible for Kishore Biyani (India’s retail king) to bear the retail business as there were fixed costs like rent, interest and salary. So, however, there was no other way than selling his business to Reliance Industries Limited (RIL) which is on a shopping spree to expand its retail foothold in the country.
Also, Biyani sold the Future Group’s retail businesses along with its warehousing and logistics businesses to Reliance Industries limited retail arm (Reliance Retail) for an amalgamated value of around Rs.24, 700 crore.
The deal has hit an obstruction with Amazon approaching a negotiation body in Singapore, asserting that the Future Group has breached contractual obligations by excluding the e-tailer from discussions.
Lastly, Amazon, Which owns 49 per cent in unlisted Future Group Company Future Coupons and which also owns 7 per cent in Future Retail.