Future Group is negotiating a deal to acquire large format retailer HyperCity, in an attempt to expand its presence across India. A deal is expected to be reached by the end of this month.
Around 20 stores added to its network
HyperCity operates around 20 hypermarkets in a number of different cities across India; Mumbai, Hyderabad, Bengaluru, Bhopal, Ludhiana, Amritsar, Jaipur, Pune, Ahmedabad, Delhi and Noida in Delhi-NCR. Food accounts for around 65% of HyperCity's sales, meanwhile a similar percentage of sales for Big Bazaar, Future Group's flagship banner, comes from non-food categories. It will be interesting to see if Future Group alters HyperCity's product mix of food and merchandise, should the deal go ahead.
Currently, HyperCity is 51% owned by the Shoppers Stop department store chain, with the remaining 49% held by parent group K Raheja Corp. The planned acquisition will add around 1.4 million sq.ft of retail space to Future Group's existing 14 million sq.ft (approx). This is spread across various formats through different banners operated by Future Retail and Future Consumer Enterprise.
Future Group has acquired several different businesses in recent years. In 2014 they acquired South India-based convenience store chain Nilgiri. In 2015, they acquired Easy Day after merger of its retail business with Bharti Retail to create one the largest supermarket chains. Last year, Future Group acquired Heritage Fresh’s retail stores in Hyderabad, Chennai and Bengaluru. They also acquired Sangam Direct last year which further consolidated their position as the country's largest grocer. Future's Group latest announcement indicates that they have no plans to slow down their aggressive expansion, as they continue to increase their coverage across the market.
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