Pantaloon Retail (India) Ltd to realign businesses

A meeting of the Board of Directors of Pantaloon Retail (India) Ltd (PRIL) reviewed decisions on realignment of businesses. The meeting was in light of the favourable market conditions which are offering opportunities for the company to accelerate its retail business growth and market leadership. The Board considered plans to reorganise the businesses with a view to encash value created in non-retail businesses, create greater financing flexibility and offer investors an opportunity to benefit from sector-focused business entities. Commenting on the proposal made by the management to the Board, Kishore Biyani, Managing Director, Pantaloon Retail (India) Limited said, “In the last few years, the company had forayed into allied businesses in the consumption sector with a view to strengthen the retail business as well as leverage on new opportunities that the Indian economy provides. In order to unlock more value for the shareholders, the management had proposed to independently govern and build these businesses, while retaining the character of Pantaloon retail as a pure retail play, focusing on retail businesses.” The company’s value retail business, led by its format divisions, Big Bazaar and Food Bazaar have gained tremendously in size and scale and emerged as a market leader in modern retail. The management believes that it now demands a focused approach for further growth and expansion. The company operates 119 Big Bazaar stores in over 70 cities across the country and plans to expand and operate close to 275 stores by 2014. In order to enable the same, The Board approved the revised proposal to drop down Big Bazaar, Food Bazaar and related formats into a wholly owned subsidiary with a view to enable capital infusion.