Kishore Biyani, known as Retail King, sold Future Group’s retail, wholesale logistics and warehouse business to Mukesh Ambani for Rs 24,713 crore. Big Bazaar is a big name in the retail segment, on which Mukesh Ambani has now been empowered. Now Kishore Biyani himself told that because of which he had to sell his business.
Cause of crisis
Actually, before 2019, Kishore Biyani’s business was spreading rapidly. Kishore Biyani’s Future Group came into financial trouble earlier this year. Now Kishore Biyani says that domestic retail stores were closed due to Corona crisis, due to which there was a revenue loss of about Rs 7,000 crore in the first three-four months, and then had to sell their business to Reliance Industries.
Lockdown is a big reason
He said that the biggest problem due to the closure of the store is not the rent, but the interest of the loan. Let me tell you, when Kishore Biyani failed to pay the debt of Future Retail earlier this year, banks seized the pledged shares of the company.
7,000 crore loss
Kishore Biyani said at the Fignitel Retail Convention that in the first 3-4 months of the Corona crisis we lost revenue of about 7,000 crores. For this, he described the interest on the loan as the most responsible.
There is no other way than to sell
He said that he made a lot of acquisitions in the last 6-7 years, but during the Corona crisis I felt that now there is no other way than to get out of this business. He said that this is the worst situation for retailers so far.
Sarees to Big Bazaar
In fact, Kishore Biyani, born in the Marwari family, who reached the Big Bazaar from the business of saris, started Pantaloon in 1987. Due to lack of money, he sold this business to Aditya Birla Group in 2012. Biyani started Pantaloon and Big Bazaar from Kolkata.
Kishore Biyani’s business
Kishore Biyani started his business in 1987, his first company was Mainz Wear. Later it was renamed Pantaloon. Then in 1991, it was renamed as Pantaloon Fashion Limited. In 2001, Kishore Biyani opened Big Bazaar stores across the country.