You are here: Home » Companies » News
Business Standard

Future Group to sell stake in supply chain, stationery JVs

The group is also mulling stake sale in Future Generali Insurance

Press Trust of India  |  New Delhi 

After announcing stake sale in Pantaloon and Future Capital, Kishore Biyani led Future Group is readying itself for more sell-off, including Future Supply Chain and Staples Future Office Products.

The group, laden with an estimated consolidated debt of Rs 6,000 crore, is also mulling stake sale in Future Generali Insurance, a joint venture with Italian insurer Generali Group, according to people close to the development.

Pantaloon Retail Joint Managing Director Rakesh Biyani said: "We are looking at opportunities to raise money by selling stakes in non-core retail businesses."

He did not provide any timeline or specific details of the proposed transactions.

Sources, however, said the group is holding discussions with interested parties to sell off ownership in Future Supply Chain (FSC) and Staples Future Office Products.

The group may hive off part of its 70% stake in FSC, a supply management firm. The remaining 30% is held by Hong Kong-based Li & Fung, which is also interested in increasing its stake in the company, a source said, adding an announcement on Future Supply Chain is expected by July-end.

Similarly, Future Group is also looking to dilute holding in Staples Future Office Products (SFOP), a joint venture between the company and Staples Asia Investment (a unit of Staples, US).

A deal is likely to be sealed in the next couple of months, the source said.

The group's retail holding firm Pantaloon Retail India Ltd holds 39.5% stake in SFOP.

Commenting on stake dilution in the insurance company Biyani said: "It is a process, it is part of our non-retail assets and definitely that is one of the options available to us to see if we can find a partner to buy that asset also. However, it is subject to regulatory approvals."

In April, Future Group gave away majority control of Pantaloon, the department store chain to Kumar Mangalam Birla's Aditya Birla Nuvo Ltd for a total consideration of Rs 1,600 crore.

The group also sold majority stake in Future Capital Holdings to private equity firm Warburg Pincus for Rs 560 crore earlier this month.

PRIL's scrip closed at Rs 180.55 per share, up 3.29% from the previous close on the BSE.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, June 20 2012. 18:23 IST