Future Group plans deals to cut debt - paper

Mon Mar 19, 2012 10:16am IST

A customer looks at consumable goods before buying them at a supermarket in Hyderabad December 1, 2011. REUTERS/Krishnendu Halder/Files

A customer looks at consumable goods before buying them at a supermarket in Hyderabad December 1, 2011.

Credit: Reuters/Krishnendu Halder/Files

Related Topics

Stocks

   

REUTERS - Future Group, India's largest retailer which owns Pantaloon Retail PART.NS, is looking to sell stakes in brands and units to raise funds and help cut the group's $1.6 billion debt, the Economic Times reported on Monday.

"We are working on 18 deals and expect to consummate many of the transactions early next fiscal (year). We will be a zero-debt company by March 2013," Future Group Chairman Kishore Biyani told the newspaper.

The group plans to raise 25 billion to 30 billion rupees by selling a minority stake in Future Value Retail, which owns Big Bazaar hypermarkets and Food Bazaar supermarkets, to a strategic investor, the paper said.

It plans to merge its electronics retail chain eZone with a services company based near New Delhi and bring in financial and strategic partners for HomeTown, its furniture retail chain, helping cut the debt of the parent company, Pantaloon, by around 6 billion to 7 billion rupees, the paper said.

Biyani could not be immediately reached for comment by Reuters.

Pantaloon Retail has debt of 25 billion rupees.

Separately, Future Logistics, a group firm, is looking to raise 8 billion to 10 billion rupees from private equity investors, the paper said.

"Talks are on with three PE funds and we will be able to seal a deal within two months," Biyani told the paper.

Another group firm Future Ventures, which has invested in three dozen brands, including BiBa, Indus League, Celio and Indigo Nation, is also likely to sell some holdings, the paper said.

"We have many jewels that can be encashed to reduce our debt burden," Biyani told the paper.

Retailers in India have been hit by a slowdown after they expanded rapidly, leaving them with huge debt. Over the last two years, small retailer Subhiksha was forced to shut down while Vishal Retail (VREL.NS) sold its wholesale and retail businesses to private equity firms TPG TPG.UL and India's Shriram group.

(Reporting by Swati Pandey in MUMBAI; Editing by Ranjit Gangadharan)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Adani Project

Adani Project

Australia approves Adani's $16 bln Carmichael coal project  Full Article 

India-U.S. Talks

India-U.S. Talks

Kerry to woo Modi's India, but quick progress unlikely  Full Article 

Paring Debt

Paring Debt

Jaiprakash to sell hydro plants to Reliance Power  Full Article 

Nifty Falls

Nifty Falls

The broader index hits lowest in nearly a week on profit taking  Full Article 

Mideast Conflict

Mideast Conflict

U.N. Security Council calls for humanitarian ceasefire in Gaza  Full Article 

Market Eye

Market Eye

Foreign investors prefer Indian cyclicals, utilities - Macquarie  Full Article 

Debt Investment

Debt Investment

India's FII debt limit hike credit-positive, says Moody's  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage