Reliance's smart decision after a tough fight..!?

Reliance, one of the largest business conglomerates in India, also has a large business presence in its retail segment. It also runs an e-commerce service called jio mart. In this situation, they are capturing various companies to further expand their business. It has been partnering with many companies. It is also making huge investments. Future Retail is the deal that was planned to make such an investment. But the biggest stumbling block to the Future-Reliance deal was Amazon. amazon, a partner of Future Group, has filed a lawsuit against its partner in a singapore court. In this case, the Singapore-based arbitral tribunal, in its interim injunction, suspended Future Group's retail business from selling $ 3.38 billion worth of shares to reliance Industries Limited.
Amazon, a US e-commerce company, has a 49% stake in Future Coupons. reliance, meanwhile, had planned to buy shares in kishore Piani-owned Future. It has been in talks for the past few quarters to sell to reliance following the credit crunch. Following this, a deal worth Rs 24,713 crore was signed to acquire Future Group.
 But the tug-of-war persisted due to the amazon problem. In this context, it has been reported that mukesh Ambani's reliance Retail has taken over the operations of Future Group and is acquiring some of its largest stores, including Big Bazaar. It is also learned that reliance Retail will re-employ and pay the employees who were laid off by Future Group.
It is said that reliance is planning to acquire Future Group, which is already in a huge debt problem and cannot afford to pay more than 200 stores, and if not, reliance will close these 200 stores. According to a statement issued to the Stock Exchange, the above shops have been unable to operate due to past problems. The company has generally said it has decided to cut stores in the coming months to reduce losses. But Reliance's name is not mentioned in it. Future Group owns 1700 shops, including the Big Bazaar. It is also said that reliance is acquiring Lease as it is unable to make deals. Is this the right opportunity for Reliance? Or else reliance is taking over.
However, amid these legal battles, the balance owed to landowners alone is over Rs 6,000 crore. On the one hand, Reliance's plan is seen as a good thing for many lenders, suppliers, and employees. This will make it easier for lenders to repay the loan. Employees who have lost their jobs will get their jobs back. Suppliers can also re-supply with confidence. Overall this is a good thing. This is a positive thing for Future-Reliance on the one hand and a good thing for lenders and employees, on the other hand, is something to be welcomed.
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Sowmiya Sriram

27/02/2022 05:04 PM