The Indian private conglomerate, Future Group acquires Sangam Direct which is the chain of retail stores from Wadhawan Holding. This would be the group’s fourth acquisition and would further empower it to stand at the zenith position amongst the largest grocers of the country.
The agreement amount and profound details are still not unveiled. Wadhawan Retail Ventures Pvt. Ltd a company owned by the promoters of Dewan Housing Finance Corp. Ltd (DHFL), has 35 stores under Sangam Direct which are located in Bengaluru and Delhi. As per the sources, Kishore Biyani’s company will buy the stores primarily through lease transfer instead of cash. Previous to this acquisition, Future Group has procured Nilgiris chain from southern region, convenient store chain Big Apple and Easyday network of retail business of Bharti Retail from northern region.
Sangam Direct, which was earlier known as Sabka Bazaar, was commenced by Hindustan Unilever Ltd as its online groceries delivery platform. After six years, it was taken over by Wadhanwan group which was a spinach retail chain. Now it has rolled into Future Group as a part and parcel of Mr. Biyani’s stratagem to bolster the base of small stores for his company. 100-150 crore revenue generator Sangam Direct can be rebranded as Easyday in the near future.
Currently, Future Group has over 700 functional stores in 221 cities spread over 13 million square feet of retail space. The group is working through Future Retail Ltd and Future Consumer Enterprise Ltd. and has 500 small convenient stores on the lines of EasyDay and Nilgiris and others are big format stores of stores Big Bazaar and FBB. The stores are opportune to have a footfall of 295 million customers annually. In partnership with government of Rajasthan, Future Consumer enterprise also manages 5000 Annapurna Bhandars. The group presently operates online through its endeavors Bigbazaardirect.com and futurebazaar.com. The country’s largest listed retail group has also newly acquired Rocket Internet-backed online furniture and home furnishings store FabFurnish.com in an all-cash deal.
Recently, there were reports stating Future Group’s keen interest in buying Heritage Foods Limited which is based in Hyderabad. The discussion between the two is in advanced stage and a legal agreement is still to come.