Future Group venture to buy stores under Pantaloon

Future Consumer Enterprises (FCEL), a wholly owned

arm of Kishore Biyani-promoted investment and business management company Future Ventures, is planning to buy the convenience store chain under Pantaloon Retail. Pantaloon Retail had transferred its value retail format business to its wholly owned subsidiary Future Value Retail two years ago. Pantaloon also houses the hypermarket and food store chain Big Bazaar and Food Bazaar, among other retail formats.

In a fresh disclosure to the stock exchange, Future Ventures has said that it was putting in Rs 120 crores afresh in its subsidiary, Future Consumer, through subscription of equity shares and fresh issue of zero per cent optionally fully convertible debentures of FCEL. Out of this, Rs 2 crore had been invested through equity shares.

It also added that Future Consumer had plans to deploy the proceeds, arising out of the issue of securities, towards acquisition of chains of shops under the convenience store format, from Future Value Retail. It did not name the store format but said it operates a chain of over 180 convenience stores across Delhi, Maharashtra and Karnataka.

Future Consumer, registered revenues of Rs 107.69 crores for FY12 compared to Rs 81.32 crores for the year ended March 31, 2011. The company is engaged in product development, designing, branding and distribution of fast moving consumer goods (FMCG). It offers its products under various brands.