IndiaRetailBiz

Kishore Biyani promoted and led Future group moved a step closer towards the goal of restructuring its businesses when shareholders of the group’s flagship company Pantaloon Retail India accorded their approval for creation of three separate entities. These entities will cater to FMCG, fashion, and retail businesses of the group. The group has also been rechristened as Future Markets & Consumer Group (FMCG).

According to a filing made to the Bombay Stock Exchange, the shareholders of the company have approved the sale of its fashion division, including the entire investment in Home Solutions (Retail) India, to its wholly-owned subsidiary, Future Value Retail and sale of its retail division to subsidiary Future Speciality Retail. Pursuant to the said transfer, Future Value Retail would be renamed as Future Merchandising and Future Speciality Retail would be rechristened as Future Consumer Enterprises, informed the company.

The recent changes and approvals, despite the current ban on FDI in multi-brand front-end retail, are expected to help the group to induct foreign capital in this area by taking advantage of revised provisions in terms of the Press Release Nos 2, 3, and 4 issued a few months back by the Government of India. In the past few days, promoters have also been allowed to bring in fresh capital with a view to induct additional resources and increase their holding in the company.

In this regard, the contry’s largest multi-format, multi-product, predominantly retail group operating across all product segments, is already believed to have struck a deal with the world’s second largest retailer France-based Carrefour SA for its retail foray in India.