Kolkata (TIP): Future Group has acquired Delhi’s convenience store chain Big Apple which operates 65 stores in the National Capital Region (NCR) for around Rs 62 crore in an all-cash deal. The group is likely to re-brand the Big Apple stores into its KB’s Fair Price stores – the group’s neighbourhood store format – to consolidate its operations in the NCR, one of its largest market in the country. The country’s largest retailer closed the deal through Future Ventures India LtdBSE -0.88 %, the investment arm of the group which builds and operates innovative and emerging businesses. “The acquisition will help Future Group to significantly grow presence in the convenience store format in NCR where it already operates 100 KB’s Fair Price neighborhood stores and have a ready operational and administrative infrastructure,” a person close to the deal said, requesting anonymity.
Big Apple is owned by Express Retail Services Ltd, which sells groceries and food products for over six years. The Big Apple stores generate annual revenue of around Rs 120 crore and is a debt-free company. Incidentally, Future group has recently transferred its 180-plus KB’s Fair Price stores from Pantaloon Retail India to Future Consumer Enterprises, which is a wholly-owned subsidiary of Future Ventures. While Express Retail Services will become a wholly-owned subsidiary of Future Ventures, there are possibilities that it might be later merged into Future Consumer Enterprises to consolidate the convenience store operations under a single holding
Big Apple has direct tie-up with farmers in Haryana, Rajasthan, HP and Uttar Pradesh, which provides consumers with uninterrupted and qualitative product supply, according to the company website.