Biyani’s Future Group to revamp business model
10 Nov 2012
The Future Group is remodelling its various businesses after it sold a majority stake in the Pantaloon retail chain, the flagship entity of Pantaloon Retail, to an Aditya Birla group company.
Under the new business plan, Pantaloon Retail and Future Ventures India will demerge their fashion businesses into a new listed unit that will simplify the businesses into three main segments, the two companies said in a statement late on Friday.
All fashion brands, currently held by Pantaloon Retail and group firm Future Ventures will be transferred to Future Fashion, along with debt of Rs1,226 crore.
Pantaloon Retail shareholders will get one share of Future Fashions for every three held, while Future Ventures shareholders will get 2 shares of the new entity for every 31 held.
"We grew multiple formats in the early stages of our growth, and now as each one of them has become sizeable, we are giving them independence to propel their growth," Kishore Biyani, promoter and chief executive officer of the Future Group, said in the statement.
The company will also seek shareholder approval to raise Rs1,500 crore through public or private offerings of shares.
Earlier this year, Aditya Birla Nuvo agreed to buy a controlling stake in Pantaloons Format clothing brand and retail chain to help cut its debt.
