Fu­ture Re­tail may soon join hands with a for­eign in­vestor: Re­port

Shoes & Accessories - - Updates I India -

Kishore Biyani-led Fu­ture Re­tail may close a deal with a for­eign in­vestor in the next two months on the back of a large data­base cre­ated from nearly 500 mil­lion cus­tomers, says a re­li­able source.

“Ul­ti­mately, it is all about how for­mi­da­ble we all are as play­ers get big­ger and you need an al­liance. We can’t sell more than 10 per­cent and for­eign port­fo­lio in­vestor (FPI) is the only route avail­able. It should take 2-3 months for any deal to fruc­tify,” Biyani in­formed a daily.

Ac­cord­ing to the source, the group is re­port­edly in talks with Ama­zon.

In­dus­try ex­perts be­lieve that Ama­zon can in­vest in a re­tail com­pany through its in­vest­ment arm. An arm, reg­is­tered as a for­eign port­fo­lio in­vestor (FPI), can ac­quire up to 10 per­cent in an In­dian en­tity as a sin­gle firm. Ama­zon has ac­quired a 5 per­cent stake in Shop­pers Stop via this route. An In­dian com­pany, how­ever, can di­lute up to 49 per­cent stake to mul­ti­ple FPIS.

Biyani be­lieves that data and not merely phys­i­cal stores will help seal the deal as many con­sumer com­pa­nies are re­ly­ing on ex­ter­nal data to gauge their sales and plan new launches. The re­tailer has data on con­sump­tion and buy­ing fre­quency pat­tern of nearly 30 mil­lion loyal cus­tomers and about 500 mil­lion con­sumers who have vis­ited Fu­ture Group stores last year.

“While ev­ery­one needs a phys­i­cal pres­ence, data is my big­gest wealth. Data is my oil,” Biyani said.

Fu­ture Re­tail has a pres­ence in 255 cities through over 1,030 stores. In the last six years, Biyani has ac­quired half a dozen su­per­mar­ket store chains and put to­gether a to­tal re­tail space of 13.6 mil­lion sq ft.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.