Future Group buys Sangam Direct chain
Future group CEO Kishore Biyani has announced the deal without disclosing any figures.
It is Future Group’s third acquisition in northern India in the food and groceries space in the past three years after Big Apple and EasyDay. In the south, the company acquired Nilgiris last year and is in talks to buy the retail business of Heritage Foods.
Sangam Direct and Heritage Foods will add Rs800 crore (US$120 million) to Future Group’s annual revenue, says Biyani.
Heritage Foods, which has 114 stores in Bengaluru and Hyderabad, reported revenue of Rs582.9 crore for 2015-16, up 18 per cent. Sangam Direct, which has about 35 stores across Bengaluru and Delhi, was started by Hindustan Unilever in 2001 as its online groceries delivery platform. It was acquired in 2007 by the Wadhawan group, which owned the Spinach retail chain.
Future Group, through Future Retail and Future Consumer Enterprise, has about 800 stores. About 500 are small-format EasyDay and Nilgiris convenience stores, the rest being the larger-format stores of Big Bazaar and FBB, which is the group’s fashion retail offering.
Future Consumer Enterprise also runs 5000 Annapurna Bhandars in partnership with the government of Rajasthan. Future Group is the parent of listed retail companies Future Retail, Future Lifestyle Fashions and Future Consumer Enterprise.