Future Group Founder Kishore Biyani said his company lost nearly ₹7,000 crore revenue in first three-four months of the COVID-19 pandemic which led him to sell his business to Reliance Industries. In August, Mukesh Ambani’s Reliance Industries announced acquisition of Future Group’s retail, wholesale, logistics and warehousing business for ₹24,713 crore.
“We got into a trap to be very honest with COVID-19. In the first 3-4 months, we lost nearly Rs 7,000 crore of revenue, Biyani said at the Phygital Retail Convention. There was no way the company could have survived losing such an amount, he said, adding the problem is rent doesn’t stop, interest (on debt) doesn’t stop. “We did too many acquisitions in the last six-seven years… I thought there was no other answer but to exit,” he stated. He said for retailers the worst is yet to come.
Through the deal made in August with Reliance Industries, the Ambani led firm will acquire Future Retail and Future Lifestyle Fashions Ltd that operates fashion discount chain Brand Factory. While Reliance will take over Future Consumer, which sells food, home and personal care products, Future Group’s financial and insurance business is not part of the deal.