Futures Consumer acquires Nilgiri retail store chain

Fast moving consumer goods (FMCG) major Future Consumer Enterprises Friday acquired the south India based convenience store chain Nilgiri.

"This acquisition is synergistic as it enables strengthening and expanding through franchises," said Kishore Biyani, group chief executive, Future Group.

However, the company did not divulge any transaction details.

Nilgiri, which was established way back in 1905, has a foothold in four key south Indian states via its 140 outlets. The company also owns several brands dealing in dairy, bakery and chocolate brands.

According to the company, a select product range of the brand is also retailed in store bakeries, which are managed and operated by eight distribution centres with a a fleet of vehicles, including refrigerated vans to supply its dairy, bakery and chocolate products.

The company added that acquisition will lead to its geographical expansion of the convenience store business as at present the company's store business is primarily located in north and west India.

The company also plans to introduce Nilgiri's indigenous dairy, bakery and chocolate products to stores.

The company's scrip at the Bombay Stock Exchange (BSE) was trading at Rs.11.30, up 8.76 percent or 0.91 points from its previous close of Rs.10.39.