As per reports in the leading financial dailies, the retail business of Heritage Foods could be acquired by Kishore Biyani founded Future Group as the talks for the acquisition have reached an advanced stage.
The deal would give Future group an access of more than 100 grocery outlets in Hyderabad, Chennai and Bengaluru, according to sources aware of the developments in the deal.
If the transaction goes forward, this will be Biyani’s fourth acquisition over the past four years, as his Future Group has a clear cut market strategy to consolidate its position, especially in grocery retail segment.
The recent acquisitions of Future group since 2012 include the Easyday network from Bharti Retail, New Delhi-based Big Apple and Hyderabad-based Nilgiri’s supermarket chain.
It is noteworthy that the Rs 2,381-crore Heritage Group was founded in 1992 by N Chandrababu Naidu, who is currently chief minister of Andhra Pradesh.
Hyderabad-based Heritage Foods operates two flagship divisions — dairy and retail — and has interests in small businesses, including bakery and animal feed. Retail accounts for nearly a fourth of the overall business, with sales of Rs 583 crore, up 18% last fiscal.
Future Consumer Enterprise, the fast-moving consumer goods (FMCG) arm, currently has brands such as Tasty Treat, Nilgiris, Golden Harvest, Sunkist, Kara, CareMate, Clean Mate, Think Skin and Fresh & Pure.
The group expects its own food brands to account for nearly 70% of earnings from corresponding product categories at its supermarkets, part of the larger strategy to reach Rs 20,000 crore in sales from in-house brands by 2021.
Source: News Nation
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