Nov 29: E-commerce giant Amazon is reportedly in final talks to buy a share of 9.5 percent in Kishore Biyani-led Future Retail. As per news sources, the companies will come to a final decision regarding the agreement within the next ten days. The deal is likely to be announced in January 2019.
As per the reports, under the Foreign Portfolio Investor (FPI), the Amazon-Future Group deal is initially predicted to be around Rs 2,000 crore.
Amazonâ€™s acquisition of the complete holding of Biyani and promoter group in the future subject to applicable regulations in India might also be included in the pact. Presently, the promoter and the promoter group hold around 46.51% share in Future Retail Ltd. It operates hypermarkets and supermarkets under the brands Big Bazaar, Easyday, Foodhall, HyperCity, FBB, Heritage fresh,Â ezone, and WH Smith.
It operates in around 250 cities across the country. With the aim of its expansion in the Indian market, America based e-commerce giant Amazon has already bought a stake in Shoppers Stop and the Birla owned More. Â Acquisition in Future Group, if went well, will make it the third such investment by Amazon in brick-and-mortar retail sector of the country.
Indian retail major Shoppers Stop owned by the K Raheja Corp Group in 2017, through an issue of equity shares on a preferential basis, raised funds of Rs 179.26 crore from Amazon.
In September 2018, the e-commerce giant announced that it has co-invested in Witzig Advisory Services. The latter had acquired the homegrown â€˜Moreâ€™ chain of stores owned by Aditya Birla Retail. As per reports, the upcoming pact is likely to favor Amazonâ€™s aim of its expansion in the countryâ€™s retail market. The offline retailers are still dominating the Indian market.
The move will tighten the competition going on between Amazon and Flipkart. In the Indian online market, Amazon and Flipkart are in a huge competition.