Why did Reliance take over Big Bazaar?

Citing unpaid payments by Future, Reliance has taken control of operations of some 200 Big Bazaar stores and has plans to seize another 250 of Future's retail outlets. Combined, they represent the crown jewels of Future's retail network and around a third of all Future outlets.

Why did Reliance buy Big Bazaar?

Reliance has taken over the real estate lease agreements of at least 400 Big Bazaar stores where Future group defaulted on payment for renewing the lease. “Instead of taking over Future Retail, Reliance is doing this as a real estate play because retail is all about location and store space.

What went wrong with Big Bazaar?

Inability to Cater to Tier 2 and Tier 3 Markets: While Big Bazaar was successful in urban areas, it failed to penetrate the rural markets effectively. Its inability to tailor its product offerings and pricing to these markets led to lost opportunities.

What is the controversy of Reliance?

Criticism and controversies. The company has attracted controversy for reports of political corruption, cronyism, fraud, financial manipulation, and exploitation of its customers, Indian citizens, and natural resources. The chairman of Reliance Industries, Mukesh Ambani, has been described as a plutocrat.

How did Reliance take over future retail?

In March 2022, Reliance Industries Limited (RIL) took over 900 Future Retail stores citing non-payment of rent. In April last year, most secured lenders rejected the deal with Reliance Industries. Thereafter, the Future Group firms were admitted for insolvency proceedings.

How Mukesh Ambani acquired Big Bazaar?

What went wrong with Future Retail?

Future Retail was dragged into insolvency proceedings by its lender Bank of India after it defaulted on loans. The Mumbai bench of the National Company Law Tribunal on July 2022 directed to initiate insolvency against FRL.

Why did Reliance take over Future Group?

Future - which has more than 1,700 outlets, including popular Big Bazaar stores - has been unable to make lease payments for a bulk of its outlets. With landlords insisting on payments or shutting down of stores, Reliance transferred the leases of some stores to its name and sublet them to Future to operate the stores.

Why did Reliance shut down?

Reliance Industries Limited has informed that it is planning to undertake shutdown of one Crude Distillation Unit (CDU) and Fluidized Catalytic Cracker (FCC) of its SEZ refinery at Jamnagar for routine maintenance and inspection activities.

Why Reliance is falling?

Shares of Reliance Industries Ltd (RIL) slipped over 3% to a two-month low on Wednesday amid reports that two crore shares of the conglomerate changed hands in a block deal as against the one-month daily traded average of 73 lakh shares. Buyers and sellers in the transaction were not known.

Why did Reliance Capital collapse?

The Reserve Bank of India (RBI) on November 29, 2021, superseded the board of Reliance Capital in view of payment defaults and serious governance issues. The RBI appointed Nageswara Rao Y as the administrator in relation to the Corporate Insolvency Resolution Process (CIRP) of the firm.

What is the new name of Big Bazaar?

Smart Bazaar, formerly Big Bazaar, is an Indian retail chain of hypermarkets, discount department stores, and grocery stores. The retail chain was founded by Kishore Biyani under his parent organisation Future Group, which is known for having a significant prominence in Indian retail and fashion sectors.

Why Big Bazaar failed in India?

While Biyani tasted success with the Big Bazaar stores, the growing ecommerce penetration within the country, lack of funds, rising debt and other factors proved to be detrimental for the business. The pandemic paid a spoilsport and further pushed the company into debt.

Who are Big Bazaar rivals?

Did Ambani buy big bazaar?

These Big Bazaar stores were purchased by Mukesh Ambani's company in February 2022, and they have since been transformed into smart stores. Who is Kishore Biyani? Kishore Biyani, the founder and CEO of the parent organisation, the Future Group, founded Big Bazaar in 2001.

Who is the CEO of Big Bazar?

Kishore Biyani is an Indian businessman who is the Founder & CEO of Future Group, one of India's biggest brick-and-mortar retailers. He is also the founder of retail businesses such as Pantaloon Retail and Big Bazaar.

Why Reliance is so big?

Reliance Industries Ltd. started as a small textile manufacturing unit in Mumbai, and over the years, it has grown to become one of the largest companies in India. In the early years, RIL focused on the textile industry and quickly became one of the leading players in the market.

Is it good to buy Reliance share now?

Reliance Industries has TTM P/E ratio 25.11 as compared to the sector P/E of 8.20.There are 30 analysts who have initiated coverage on Reliance Industries. There are 12 analysts who have given it a strong buy rating & 11 analysts have given it a buy rating. 2 analysts have given the stock a sell rating.

Is Reliance a good company to invest in?

Company has reported net profit after tax of Rs 18182.00 Crore in latest quarter. The brokerage maintains BUY on RIL (TP of INR 2,900/share) as it believes net debt concerns are overdone, and also because RIL has industry leading capabilities across businesses to drive robust 14-15% EPS CAGR over the next 3-5 years.

Who bought Reliance?

In 2022, Mukesh Ambani's Reliance Jio won the bid and acquired the assets of Reliance Communications for Rs. 3720 crores.

When did Mukesh Ambani take over Reliance?

In 2004 he was named one of the world's most-respected business leaders by the professional-services firm PricewaterhouseCoopers. Following Dhirubhai's death in 2002, Ambani and his brother, Anil, assumed joint leadership of the Reliance companies.

Is Reliance listed in UK?

RIGD Stock Price. Reliance Industries Ltd. GDR Stock Quote (U.K.: London)

Who resigned from Reliance?

Mukesh Ambani's wife Nita Ambani to continue as chairperson of Reliance Foundation. At the 46th AGM of Reliance Industries Ltd on Monday, chairman Mukesh Ambani said his wife Nita Ambani has resigned from the conglomerate's board and will continue to be chairperson of Reliance Foundation.

What went wrong with Future Group?

Group's wrong choices of investments and tremendous debt dependency led court to send it to bankruptcy. In its investigation, Securities and Exchange Board of India (SEBI) found that the Biyanis' opened a trading account for an entity named Future Corporate Resources.

Is Big Bazaar sold to Reliance?

In August 2020, the loss-making retail giant proposed to sell its retail, wholesale and logistics arms that included businesses including Fashion at Big Bazaar, Koryo, Foodhall and Easyday to Reliance for ₹24,713 crore.