In what can be termed as a consolidation move in the backdrop of the government allowing foreign direct investment (FDI) in multi-brand retail, Kishore Biyani-led Future Group said on Thursday that it would acquire Express Retail Services, which runs grocery chain Big Apple, for Rs. 61.4 crore.
With the Big Apple acquisition, which has 65 stores in Delhi National Capital Region, the company aims to add volumes to its retail stores number in the region.
Express Retail Services, which is a debt-free company, is expecting a net sales of Rs. 120 crore during 2012-13."Future Ventures through its subsidiary Future Consumer Enterprises has significant presence in Delhi and NCR region. This acquisition will help consolidate its position in the region, besides leveraging on its operational and administrative infrastructure," Future Group said in a filing to the Bombay Stock Exchange.
Future Group runs 100 stores of its retail brand KB’s Fairprice in NCR.
Earlier this month, Future Group firm Pantaloon Retail (India) had said it would merge its wholly-owned subsidiary Future Value Retail, which runs Big Bazaar and Food Bazaar stores, with itself.
In April, Future Group gave away majority control of Pantaloon to Aditya Birla Nuvo Ltd for a total consideration of Rs. 1,600 crore.
The group, laden with an estimated consolidated debt of Rs. 6,000 crore, was understood to have finalised plans to exit from stationery joint venture with US-based Staples by selling its entire stake to the partner for up to Rs. 170 crore.
(With inputs from PTI)