Mumbai: Kishore Biyani’s Future Group has picked up 70% stake in Godrej Aadhaar, which provides agri-services in rural areas besides retailing.
The 70% stake has been bought at an undisclosed amount by Future Ventures, a Future Group company, which is engaged in diverse business activities, primarily in consumption-led sectors.
Arvind Choudhury will be handling the business from Future Group, its CEO Kishore Biyani told PTI.
“Aadhaar Retailing Ltd will now have a board for joint management,” Godrej Agrovet Ltd’s CEO Balram Yadav said.
Biyani and Balram both declined to divulge the deal amount.
“The tie-up is mainly to increase the penetration of our insurance business, micro-finance, credit business and sourcing of agri-products,” Biyani said.
With the joint venture the company has now got entry into 62 new towns apart from the existing retail network of 55 towns, he said.
Godrej Aadhaar will continue with its agri-products business, Balram added.
Speaking on its plan of action Biyani said that whatever is available in Big Bazaar will be available in Aadhaar, apart from that there would be around 500 to 600 more Stock Keeping Units.
“We will be targeting mainly villages, towns and centers having less than three lakh population,” he said.
The business has the potential to exceed Rs 500 crore in the next 2-3 years, he said.
Future Ventures’ participation in Godrej Aadhaar will result in a stronger rural retailing business by combinig Future Ventures’ retailing expertise with Godrej Agrovet’s experience in rural marketing, Yadav said.
“We are trying to create more value by combining two big groups. Future group has excellent knowledge of retailing while Godrej has good reach of rural consumers in the country. The benefits are mutual for both the companies,” Yadav said.
It will also develop a commodities and agri-supply chain which would serve as a dependable channel for the sale of farm produce, he added.