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Although the final approvals for Reliance-Future deal are awaited, Reliance Retail has already started using Future Group’s supply chain. The retail arm of Reliance is tapping Future's network for its logistics and warehousing needs in the food, groceries and fashion retail segments.
Market regulator SEBI has already approved the acquisition of Future Group’s retail arm by Reliance Retail. However, several approvals such as National Company Law Tribunal (NCLT), no objection from Future Group’s creditors and minority stakeholders are still pending.
Reliance Retail is in the process of utilising other Future Group companies for its operations as well. The company’s capacity utilisation, which currently stands at 30 per cent, will increase to 85-90 per cent with Reliance as its principal client. Other Future Group companies such as Future Consumer and apparel manufacturing company Future Enterprises have also found a saviour in Reliance which has placed large orders with these companies.
Future Supply Chain has 70 warehouses with a space of 7.5 million sq. ft. It posted Rs 1,140 crore revenues in the financial year ended March 2020 but it declined to Rs 200 crore in the six months through September subsequently due to the lockdown. As a part of the Rs 24,713-crore Reliance-Future deal, retail and wholesale operations of Future Group will be hived off into Reliance Retail & Fashion Lifestyle, a wholly-owned subsidiary of Reliance Retail.
