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Future Group is merging its largest business unit, Future Value Retail, which houses Big Bazaar and Food Bazaar, with Pantaloon Retail, a listed company that runs the group's smaller retail operations, in order to cut operating costs and restore investor confidence after a precipitous decline in its share price.
The inclusion of Big Bazaar, the country's largest hypermarket, is intended to strengthen Pantaloon Retail which is an amalgam of a number of relatively small retail units such as Central, a chain of department stories, Home Town, which sells furniture and ezone, where electronic goods are sold.
The stock of Pantaloon Retail India Ltd (PRIL) has fallen 24% since April 30, 2012, after Kishore Biyani, the Future Group's promoter, announced that PRIL's fashion business would be demerged and sold to the Aditya Birla Group. The benchmark index Sensex climbed 2.5% during the same period.
Pantaloon Retail, which will be renamed Future Retail, will operate as a single holding entity for all the retail businesses after the merger. "It is part of the continuation of the consolidation of our retail businesses and optimising resources," said Rakesh Biyani, Kishare's brother and MD of Pantaloon Retail.
Future Value Retail, which is a 100% subsidiary of PRIL, operates 148 Big Bazaar stores and 169 Food Bazaar stores, apart from other formats such as KB's Fair Price. All its stores are located in over 70 cities, utilising retail space of more than 6 million sq ft.
SOURCE:http://economictimes.indiatimes.com/news/news-by-industry/services/retailing/future-value-to-be-merged-with-pantaloon-retail-to-cut-operating-cost/articleshow/16330591.cms
The inclusion of Big Bazaar, the country's largest hypermarket, is intended to strengthen Pantaloon Retail which is an amalgam of a number of relatively small retail units such as Central, a chain of department stories, Home Town, which sells furniture and ezone, where electronic goods are sold.
The stock of Pantaloon Retail India Ltd (PRIL) has fallen 24% since April 30, 2012, after Kishore Biyani, the Future Group's promoter, announced that PRIL's fashion business would be demerged and sold to the Aditya Birla Group. The benchmark index Sensex climbed 2.5% during the same period.
Pantaloon Retail, which will be renamed Future Retail, will operate as a single holding entity for all the retail businesses after the merger. "It is part of the continuation of the consolidation of our retail businesses and optimising resources," said Rakesh Biyani, Kishare's brother and MD of Pantaloon Retail.
Future Value Retail, which is a 100% subsidiary of PRIL, operates 148 Big Bazaar stores and 169 Food Bazaar stores, apart from other formats such as KB's Fair Price. All its stores are located in over 70 cities, utilising retail space of more than 6 million sq ft.
SOURCE:http://economictimes.indiatimes.com/news/news-by-industry/services/retailing/future-value-to-be-merged-with-pantaloon-retail-to-cut-operating-cost/articleshow/16330591.cms