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According to an article in the press, the Amazon-Future Group's contract is initially estimated at around 2,000 crores of crore executed with a foreign portfolio investor. Photo: Mint
New Delhi: According to sources, Amazon, an online retailer, is at an advanced stage of negotiations in order to buy about 9.5% stake in Future Retail, led by Kishore Biyani.
A definitive agreement should be reached between the two parties. in the next 10 days, the sources said that even in the event of last-minute obstacles, the agreement could be announced until January 2019.
When making contact, Amazon declined to comment. Messages sent to Future Group Group founder and CEO, Kishore Biyani, remain
According to an article in the press, the contract with Amazon-Future Group is initially estimated at about 2,000 crores of rupees executed as part of the project. a foreign portfolio investor (REIT).
The agreement could also include Amazon. buy o ut Biyani and the entire participation of the group of promoters in the future, subject to applicable Indian regulations.
In September 2018, the group of promoters and promoters held a 46.51% interest in Future Retail Ltd, which operates hypermarkets and supermarkets under brands including Big Bazaar, Easyday, Foodhall, HyperCity, FBB, Heritage Fresh, Ezone and WH Smith.
It is present in 250 cities of the country.
Amazon, one of the leading players in e-commerce, is already looking to expand its presence in India. has stakes in Shoppers Stop and More.
If the agreement is reached, it would be the third investment of the American company in the brick and mortar retail ecosystem in India.
Last year, major retailers Shoppers Stop had announced the raising of 179.26 crores of crore from Amazon through an issuance of shares on a preferential basis . The agreement with Amazon.com Investment Holdings LLC has resulted in a participation of just over 5% for Amazon in Shoppers Stop.
In September of this year, Amazon announced it has co-invested in Witzig Advisory Services, the entity that buys the business of Aditya Birla Retail. chain of stores' more & # 39; in India.
According to market observers, this deal should help Amazon strengthen its presence in India's retail market, which is still dominated by offline retailers.
This decision would also intensify competition. between Amazon and Flipkart, backed by Walmart, engaged in an intense battle for leadership in the Indian e-commerce market.
The largest American retailer, Walmart, had acquired a 77% stake in Flipkart for $ 16 billion. The Indian e-commerce space so far.
Amazon and Flipkart are pouring millions of dollars into building infrastructure and developing operations in the country.
This article has been published. paid from a wire agency thread without text modification. Only the title has been changed.
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