In a bid to strengthen its presence in food & grocery business, Kishore Biyani-led Future Group is now eyeing to acquire the retail business of Hyderabad-based Heritage Food Ltd. If things go as planned this will be Future Group’s second big acquisition in southern region of the country in a span of 2 years.
It is speculated that if the planned deal happens the company will get around 100 grocery stores in cities like Bengaluru, Chennai and Hyderabad. As per a leading media house, the deal may also involve a share swap, besides a cash component.
Founded in 2012 by Andhra Pardesh CM, NaraChandrababu Naidu, Heritage Foods have five business verticals that include dairy, agriculture, bakery, retail and renewable energy.
According to the company’s stock-exchange fillings, the retail division operated 112 Heritage Fresh stores as of June 2016. The company faced a pre-tax loss of around Rs 13.8 cr on revenue and Rs 583 for the year through March 2016. Shares of Heritage Foods touched their highest level in at least a year on Friday of Rs 840.75 a piece, more than doubling from a one-year low of Rs 368 in September last year.
Earlier this year, Heritage Foods took over some assets of Teja Dairy in Raichur district of Karnataka. It invested Rs 60 lakh to acquire the assets that include a dairy plant with a processing capacity of 20,000 litres on a daily basis.
Recently, Future Group was touted to be in talks to acquire Aditya Birla Retail Ltd’s megamarket brand ‘More’ eyeing to fuse its dominance in the offline retail space.
Future Group, the second-biggest brick-and-mortar retailer of the country operates hypermarket chain Big Bazaar, supermarket chain Food Bazaar and electronics store eZone, among others. The company has acquired some big retail chains such as Big Apple, Nilgiri’s and Bharti Retail.
Currently the retail giant operates over 700 retail stores in around 200 cities of the country. The group has also forayed in online shopping segment with ventures like Futurebazaar.com and Bigbazaar.com. It has also acquired online furniture and home furnishing marketplace FabFurnish.com.