The country’s retail chain aggregator, Future Group, has acquired Heritage Food Ltd.’s retail section which include 124 fresh food store across Hyderabad, Chennai and Bengaluru with an amount of Rs. 295 crore. The Future Retail Group now owns the majority of shares subsequently sharing 3.65% stakes with Heritage Food.
Promoted by the family members of Andhra Pradesh Chief Minister N. Chandrababu Naidu, Heritage Food’s acquisition in terms of an all-stock deal will help in keeping a strong hold over the South bound retail market especially in three major cities. Kishore Biyani led Future Group has taken control over its entire niche section such as FMCG, staples, fresh fruits, range of household items, and much more.
As of now, Heritage Food will let loose its bakery, agri-sourcing, retail as well as veterinary care business in fully owned subsidiary henceforth carrying forward all the business segments except veterinary care, which will later on join the Future Group. The acquired fresh food stores will unanimously support the existing network of 379 small-format EasyDay stores in North India. Further, the easyday small-format will help in getting closer to the homes and household utilities of the people dwelling in South India.
The chairman and managing director of Future Retail, Kishore Biyani has outplayed a strategic approach through aggressively expanding the small store network upto 3,000 stores in the entire nation by 2021. The food stores also includes the company’s agricultural pack houses situated in Chittoor (Andhra Pradesh), Medak (Telangana), bakery stations in Hyderabad, special fresh fruits orchids, which are directly supplied to the customers as well as local restaurants for providing quick services.
The respective deal has come as a win-win situation for both the enterprises as the retail sectors in the supermarket model comprise lots of competitors which make things lot more easier for the buyer and consumers. Big companies acquiring small retail scales is simply a way to take off burden from the shoulders hence maintaining the prosperity as usual.