Future Consumer Enterprise Ltd (FCEL), led by Kishore Biyani, has sought shareholders approval to re-align its business dealing in distribution of food and FMCG products and transfer it to Future Retail.
In a postal ballot notice, the company said: "The Board proposed to re-align the business of distribution of food and FMCG products through convenience stores, presently being undertaken by the company itself or through its subsidiaries ... Such that the business comprised in the undertaking be transferred to and be carried by Future Retail."
In order to achieve the objective, the company will "enter into appropriate arrangements in this regard (including by way of supply, brand license and franchise agreements).
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At present, FCEL operates its FMCG business through its subsidiaries such as KB's Fair Price, KB's Conveniently Yours, Big Apple, Aadhaar and Nilgiris.
It added: "The aforementioned re-alignment will go towards the company fulfilling its strategic objectives of being an integrated food and FMCG entity."
FCEL shares closed 5.47 per cent up at Rs 26.05 apiece on BSE today.
