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<ul><li>The deal marks the internet giant’s entry into the food retail business in <keyword id="3658" type="COUNTRY" weightage="20" keywordseo="India">India</keyword>.</li><li>‘<keyword id="50019" type="PERSON" weightage="20" keywordseo="more">More</keyword>’ will help <keyword id="18635" type="CITY" weightage="20" keywordseo="Amazon">Amazon</keyword> set up an offline presence in India similar to its strategy in the US.</li><li>More is the fourth-largest supermarket chain in India behind Reliance Retail Ltd, <keyword id="44949" type="CITY" weightage="20" keywordseo="Future-group">Future Group</keyword> and DMart. </li></ul>Amazon.com Inc along with private equity firm Samara Capital has agreed to buy <keyword id="44373" type="CITY" weightage="20" keywordseo="Aditya-Birla-Group">Aditya Birla Group</keyword>’s grocery and food retail chain ‘More’, marking the Internet giant’s entry into the food retail business in India. The deal is valued at about ₹42 billion ($580 million), according to several media reports. Samara will own the majority stake in the entity set up to buy Aditya Birla Retail while Amazon will own the rest. <keyword id="3373923" type="PERSON" weightage="20" keywordseo="RKN-Retail">RKN Retail</keyword>, the operating entity of Aditya Birla Retail will divest its 62% stake in the business to that same entity. The deal has already received board approval from RKN, according to regulatory filings. ABRL, which launched its food and retail business in 2007, operates over 523 More-branded supermarkets and 20 hypermarkets. It is the fourth-largest supermarket chain in India behind Reliance Retail Ltd, Future Group and DMart. Offline push The deal marks Amazon’s plans to make a foray into its food retail business in India, helping it set up an offline presence similar to its strategy in the US where it has acquired grocery chain Whole Foods. This deal will also help it compete with US mass retail giant Walmart Inc. which recently bought e-commerce company Flipkart Inc. for $16 billion, and with Chinese e-commerce giant Alibaba, which is said to be considering a $5 billion (₹350 billion) investment into a joint venture with Reliance Retail, India’s largest retailer in terms of sales. Amazon has said to have set aside $500 million for its India grocery expansion plans. It has already invested $5 billion into India, its fastest growing market. Amazon along with other large retailers including Alibaba and Walmart have been adopting a hybrid business model of offline and online to compete.

Amazon rings up India’s fourth largest grocery chain ‘More’ with co-investor Samara Capital

<ul><li>Future Retail is currently in talks with Reliance, Premji Invest and Samara Capital for a stake sale. </li><li>Due to the speculated Mukesh Ambani push, the share price of Future Retail has jumped 5% today and is at its highest since the lockdown in late March.</li><li>Biyani and his family hold a 33.5% stake in Future Group, but almost all of it has been pledged to lenders. </li></ul>Kishore Biyani’s Future Retail has been in troubled waters for a long time now and finally, good news might be on its way. According to sources, the company is currently in talks with Reliance, Premji Invest and Samara Capital for a stake sale. And because of the speculated Mukesh Ambani push, the share price of Future Retail has jumped 5% today and is at its highest since the lockdown in late March. <div type="image" title="future retail" msid="76460653" hostid="261"></div> The deal could be finalised before the month ends, says a source. In January 2020, global e-commerce giant Amazon had already signed a long-term business agreement with Kishore Biyani’s Future Group. As per the deal, Amazon had become Future Retail’s authorized online sales channel. Biyani and his family hold a 33.5% stake in Future Group, but almost all of it has been pledged to lenders. <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Company </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Percentage of pledged stake </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Future Lifestyle </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">99.78% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Future Supply (FSCL) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">97.62% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Future Consumer </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">92.97% </td></tr></tbody></table> Biyani has been struggling to find investors for some time now. Earlier this month, Future Retail board also approved to issue non-convertible debentures for upto ₹650 crore. Future Consumer is currently looking to raise ₹300 crore through a rights issue. By March 2020, ratings agency ICRA had already placed a negative rating on Biyani’s company because of its debt. “Icra notes the increase in debt is mainly on account of an increase in debt of the operating companies, with the total debt at the group’s listed companies increased to ₹12,778 crore as on 30 September 2019 from ₹10,951 crore as on March 31, 2019," the rating agency said. The rising debt is coupled with the problems from the coronavirus pandemic where Future Retail has seen its revenues take a serious hit. In the third quarter of FY20 ending December 2019, Future Retail posted a 15% fall in profit and a 3% fall in revenue. The disruptions due to COVID-19 pandemic will only make it worse. SEE ALSO: <a href="https://www.businessinsider.in/business/startups/news/reliance-share-price-jumps-in-early-trade-because-mukesh-ambani-says-reliance-is-now-net-debt-free/articleshow/76456966.cms">Mukesh Ambani says Reliance is net debt-free 9 months before the deadline – share price jumps</a> <a href="https://www.businessinsider.in/international/article/china-news-xi-jinping-pushes-pla-clash-with-india-as-coronavirus-hits-gdp-and-increases-debt/articleshow/76454495.cms">Xi Jinping’s China seems to be coming of age the same way as Western imperialists</a>

Future Retail share price is at its highest since lockdown as stake sale with Reliance, Premji or Samara is on the cards

<ul><li><keyword id="18635" type="CITY" weightage="20" keywordseo="Amazon">Amazon</keyword> has said that it was denied the Rights of First Refusal for the deal with Future Group.</li><li>In August, the Mukesh Ambani-led Reliance had acquired Future Group’s assets by way of a ‘slump sale’.</li><li>Amazon in 2019 had picked up a 49% stake in <keyword id="44950" type="PERSON" weightage="20" keywordseo="Kishore-Biyani">Kishore Biyani</keyword>’s Future Group’s – Future Coupons for ₹1,431 crore. </li></ul>Global e-commerce giant Amazon has sent a legal notice to Future Coupons over Future Group’s deal with Reliance. Amazon has <a href="https://www.timesnownews.com/business-economy/companies/article/amazon-sends-legal-notice-to-future-group-for-alleged-breach-rofl-rights-in-reliance-deal/663768">said that </a>it was denied the Rights of First Refusal for the deal with Future Group. In August, the Mukesh Ambani-led Reliance had acquired Future Group’s assets by way of a ‘slump sale’. However, even then speculations were rife about what happens to Amazon’s previous partnership with Future Coupons. Amazon in 2019 had picked up a 49% stake in Kishore Biyani’s Future Group’s – Future Coupons for ₹1,431 crore. As part of the agreement, Amazon had been granted a call option. This option allows Amazon to acquire all or part of the promoters' shareholding in <keyword id="375475" type="COMPANY" weightage="20" keywordseo="Future-Retail">Future Retail</keyword> and can be exercised in three or ten years. “We have initiated steps to enforce our contractual rights. As the matter is sub-judice, we can’t provide details,” Amazon said in a statement. With the matter now having taken a legal turn, Amazon could pose a major hurdle in the completion of the Reliance and Future Group deal. Earlier, it was <a href="https://www.financialexpress.com/industry/amazon-to-buy-reliance-retail-stake-ril-may-sell-up-to-40-in-retail-unit-to-jeff-bezos-firm/2079667/">reported </a>by several publications that Amazon was in talks with Reliance for a 40% stake in Ambani’s retail venture. Even though the deal didn’t go ahead, Amazon has been strengthening its foothold in India. Amazon had recently received ₹1,125 crore from its Singapore-registered parent entity. Additionally, Amazon and Samara Capital are investing ₹275 crore ($37.5 million) into MORE – the retail chain the duo had acquired from Kumar Mangalam Birla’s Aditya Birla Group, according to filings sourced by financial data platform <a href="https://paper.vc/amazon-and-samara-inject-cash-into-more/">paper.vc</a>. SEE ALSO: <a href="https://www.businessinsider.in/policy/economy/news/private-companies-in-india-can-now-convert-permanent-jobs-into-fixed-term-contracts/articleshow/78546306.cms">Private companies in India can now convert permanent jobs into fixed-term contracts — without offering severance pay or a fixed tenure</a>

Amazon fights for its ‘rights’ in the Future Retail-Reliance deal – sends legal notice to the Kishore Biyani Group

<ul><li>Skechers buys 49% stake in Indian retail joint venture with Future Group.</li><li>Amazon had reportedly signed a term sheet last year for a proposed stake purchase in Kishore Biyani's venture.</li><li>Amazon and Future Group had put talks on hold as new e-commerce rules kicked in February 2019.</li></ul> Amazon was reportedly in talks to buy stake in one of India's leading retail chains, the Future Group. Tripped by the new e-commerce rules brought in by the Indian government, the two companies put those negotiations on hold. However, within a couple of weeks, Future Group's Kishore Biyani has found another keen buyer, the American footwear brand, Skechers. Biyani <a href="https://economictimes.indiatimes.com/industry/services/retail/skechers-buys-future-groups-49-in-joint-venture-for-independent-run/articleshow/67968514.cms" data-type="tilCustomLink" target="_blank">reportedly</a> sold his 49% stake in the existing joint venture to Skechers for a sum of ₹5.8 billion. Skechers now <a href="https://entrackr.com/2019/02/skechers-exit-future-group/?utm_campaign=fullarticle&amp;utm_medium=referral&amp;utm_source=inshorts" data-type="tilCustomLink" target="_blank">plans</a> to open 80-100 more stores, of which the company will directly own 20 stores. Amazon had <a href="https://entrackr.com/2018/11/amazon-acquire-9-5-stake-future-retail/" target="_blank">signed a term sheet </a> to buy anywhere between 10% and 15% stake in Future Group for up to $700 million in August 2018. In September last year, Amazon along with PE firm Samara Capital signed a deal to acquire food and grocery retail chain More. Less than a year before that, the Jeff Bezos-led firm had bought 5% stake in Shoppers Stop for $26.35 million. Physical retailers are the immediate benefactors India's new e-commerce rules. The new norms are expected to boost sales for brick-and-mortar stores by taking away the discounts available to consumers online. CRISIL has estimated that it could increase revenue for offline retailers by ₹100 billion to ₹120 billion by 2020. The promise of India's retail market is no secret to other companies either. “Few markets match the potential for growth like India does, which is why we entered the market initially, and recently decided to buy the minority stake in our joint venture,” said David Weinberg, chief operating officer of Skechers. For Amazon, the challenges in India are only rising. The company had to add new sellers and delist about 500,000 products from its sellers <keyword id="2682122" type="PERSON" weightage="20" keywordseo="Cloudtail">Cloudtail</keyword>, Appario and Shoppers Stop as the govt prohibited online marketplaces from selling products through companies in which they own stakes. As Amazon went back to the drawing board, Skechers swept away the deal. SEE ALSO: <ul class="breadcrumb clearfix"><li class="youhere"><a>Mukesh Ambani May Be The Surprise Winner From India's New Rules Hurting Amazon And Walmart</a></li></ul>

A US footwear brand has bagged a deal in India that Amazon wanted

New Delhi, June 18 () The Future Group is in advance talks with Mukesh Ambani's Reliance Industries to sell stakes in Future Retail and some other units, according to industry sources. The Kishore Biyani-led group, which already has a partnership with e-commerce giant Amazon, and Reliance Industries Ltd (RIL) had initiated talks in this regard some times back, they said. "Talks are going on but nothing has been finalised so far," a person privy to the development said. Earlier, the Future Group was also exploring stake sale opportunities in Future Retail with PremjiInvest, the family investment arm of Wipro Chairman Azim Premji, and private equity firm Samara Capital. Stating that the Future Group was in talks with PremjiInvest and Samara Capital for stake sale in Future Retail, he said the negotiations with RIL also include other retail units. When contacted, the Future Group declined to comment on the development. While a Reliance Industries spokesperson said: "As a policy, we do not comment on media speculation and rumours", adding that the company "evaluates various opportunities on an ongoing basis". If any deal is finalised, then it would be a breather for the Future Group, as promoter Kishore Biyani had defaulted on loans in March. Various rating agencies like Standard &amp; Poor's and Fitch downgraded credit ratings of Future Retail after the default and invocation of pledged shares by lenders. The Promoter &amp; Promoter Group held 40.31 per cent stake in Future Retail as of March 31, 2020. Future Retail operates 1,500 retail stores that cover over 16 million square feet of retail space in 400 cities. It has large format stores, Big Bazaar, its flagship chain, besides small store neighbourhood retail chains, EasyDay Club and Heritage Fresh. On the other hand, Reliance Retail operates a network of 11,784 stores covering 28.7 million square feet and reported a revenue of Rs 38,211 crore in the January-March quarter. KRH MKJ

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Amazon rings up India’s fourth largest grocery chain ‘More’ with co-investor Samara Capital

Rimin Dutt

Future Retail share price is at its highest since lockdown as stake sale with Reliance, Premji or Samara is on the cards

Sanchita Dash

Amazon fights for its ‘rights’ in the Future Retail-Reliance deal – sends legal notice to the Kishore Biyani Group

Sanchita Dash

A US footwear brand has bagged a deal in India that Amazon wanted

Sriram Iyer

Future Group in advance talks with RIL to sell stake in Future Retail, other units: Sources

PTI

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