Future Retail studies merger options with HyperCity
New Delhi: Kishore Biyani-led Future Retail is in talks with HyperCity Retail, part of the K. Raheja Corp. Group, for a possible merger between the two.
“All discussions at this stage are exploratory in nature. The company keeps on evaluating various possible business associations or transaction at any given time. However, at present, there is neither any legally binding agreement nor any business collaboration or association,” Future Retail said in a regulatory filing.
HyperCity operates in nearly 20 large format stores in cities such as Mumbai, Hyderabad, Bengaluru, Bhopal, Ludhiana, Amritsar, Jaipur, Pune, Ahmedabad, Delhi and Noida in Delhi-NCR.
K. Raheja Corp. Group also operates retail chains under Shoppers’ Stop and Crosswords in India. Biyani has been known for aggressive expansion of the group’s operations though mergers and acquisitions. In the past, Biyani’s Future group has acquired Bharti Retail, South India-based convenience store chain Nilgiris and retail business of Heritage Food.
In May 2015, the Future group announced that it had agreed to merge its retail business with rival Bharti Retail in an all-stock deal worth Rs750 crore to create one of the biggest supermarket chains with Rs15,000 crore turnover.
In November 2014, Future Group company Future Consumer Enterprise Ltd acquired south India-based convenience store chain Nilgiris for nearly Rs300 crore. Last year, it acquired Heritage Fresh’s 136 retail stores in Hyderabad, Chennai and Bengaluru. Future Retail acquired Easy Day after merger with Bharti Retail in May 2015. Future Retail’s flagship brands include Big Bazaar, Fashion at Big Bazaar, and Food Bazaar.