Future Group buys NCR's Big Apple stores for Rs 62 cr

Retail major Future Group is planning to acquire Express Retail Services Pvt Ltd, which runs Big Apple stores in National Capital Region, for Rs 61.35 crore in a move that would allow the Kishor Biyani firm to consolidate its operations.

With the Big Apple acquisition, which has 65 stores in NCR, the company aims to add volumes to its retail stores number in the region. The net sales from Express Retail, which is a debt-free company, for the financial year 2012-13 is expected to be Rs 120 crore.

" This acquisition will help consolidate its position in the region, besides leveraging on its operational and administrative infrastructure," the Future Group firm said.

[caption id="attachment_463157" align="alignleft" width="380"] Express Retail Services, which is a debt-free company, is expecting a net sales of Rs. 120 crore during 2012-13.[/caption]

ERSPL is engaged in retailing of groceries and food products through general convenience stores under the brand 'Big Apple' in the national capital region (NCR) for the last six years.

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Future Group runs 100 stores of its retail brand KB's Fairprice in NCR, while Big Apple has 65 outlets.

Earlier this month, Future Group firm Pantaloon Retail (India) had said it would merge its wholly owned subsidiary Future Value Retail, which runs Big Bazaar and Food Bazaar stores, with itself.

In April, Future Group gave away majority control of Pantaloon to Aditya Birla Nuvo Ltd for a total consideration of Rs.1,600 crore.

The group, laden with an estimated consolidated debt of Rs.6,000 crore, was understood to have finalized plans to exit from stationery joint venture with US-based Staples by selling its entire stake to the partner for up to Rs.170 crore.

It is also considering stake sale in Future Generali Insurance, a joint venture with Italian insurer Generali Group.

The group may hive off part of its 70% stake in Future Supply Chain, a supply management firm. The remaining 30% is held by Hong Kong-based Li and Fung, which is also interested in hiking its stake in the company.

In June, the group had sold majority stake in Future Capital Holdings to private equity firm Warburg Pincus for Rs.560 crore.

With inputs from PTI