India’s largest retail chain, Reliance Retail, has revealed plans to acquire Future Group, a local rival, ahead of Amazon and Walmart.
The Indian company has entered into agreement to acquire Future Group’s retail and wholesale business, to include its logistics and warehousing business, for $3.4 billion.
Speaking on the development, analysts hinted that the acquisition will help Reliance Retail command one-third of the bricks-and-mortar stores of India’s modern retail sector.
Although the announcement has become a major concern for players in the e-commerce sectors as it could further complicate the future of Amazon and Walmart’s Flipkart in India.
Stats, from market index, have indicated that Amazon and Walmart are the largest open market globally by users, where e-commerce still accounts for just 3% of all retail sales.
According to a consultancy firm BCG and local trade group Retailers’ Association India, India’s retail market is expected to balloon to $1.3 trillion by 2025, up from $700 billion last year.
The development seems rather shocking as analysts could not explain how Reliance Retail could win the heart of the company despite prior attempts to acquire same by Amazon.
