Jeff Bezos of Amazon.com and Mukesh Ambani of Reliance Industries Ltd. Are two of the richest people on the planet. They have locked horns for the dominance of India’s near trillion-dollar retail sector.
According to analysts, the outcome of the battle between RIL and Amazon will set the rules of engagement in the sector in the years to come. The legal battle is with regards to the control of Future Retail Ltd (FRL), for which Ambani committed Rs. 24, 713 crores or $3.38 billion to its former boss Kishore Biyani in August this year.
Bezes alleges that the RIL-FRL deal breached the terms of the contract. For which, he signed with Biyani last year when he bought the future coupons- the ones holding entities of FRL. Hence, Amazon says it makes FRL invalid.
This business acquisition assures Reliance Retail access to nearly 1,800 stores of FRL, and also brings in around Rs. 26,000 cr in additional sales. The director of Reliance Retail Ventures Limited earlier made a statement. He said, “With this transaction, we are pleased to provide a home to the renowned formats and brands of Future Group as well as preserve its business ecosystem. Which has played an important role in the evolution of modern retail in India. We hope to continue the growth momentum of the retail industry with our unique model of active collaboration with small merchants and kiranas as well as large consumer brands. We commit to continue providing value to our consumers across the country.”
The acquisition of the Future Group’s retail, wholesale, logistics, warehousing business by RIL would mean that India’s richest man is prepared to meet brick-and-mortar needs and to meet offline retail demand in India.
