The Big Bazaar Saga – How did the country’s largest retail platform get sold?
21 years ago when Big Bazaar, India’s largest hypermarket came closer to our homes, the shopping scenario of the Indian middle class changed. Since its inception in 10 years, Big Bazaar has become the biggest retail platform in the country. But, the sad thing is that today – neither Big Bazaar is the biggest retail platform in the country nor this brand is going to be visible for a long time. Big Bazaar was running at a loss and in the face of pandemic-lockdown, the company was facing such a situation that the owners and management could not afford to continue. To avoid and save this debt-ridden company, he thought it better to sell this company.
Similarly, due to the pandemic globally, bad companies have become bad and here toh Big Bazaar is already doing well and its competitors (DMart, Flipkart, Amazon) are not able to compete either.
Come let’s see How do you make Big Bazaar mandatory, you have to hand over the key of your business to another owner and do the same thing that once changed the map of modern retail.
Let us understand the chronology of this sell-off – Big Bazaar
Big Bazaar ki parent company Future Group kyun debt-ridden His answer is very complicated.
– But in short, somewhere the company got a setback due to the e-commerce industry.
In this phase of downfall, world-booming e-commerce companies are building their customer base while Kishore Biyani-led Big Bazaar and Future Group are keeping their customer base. It’s Not That Kishore Biyani Didn’t Try, But He Never Succeeded Sometimes there was a shortage of executives, and sometimes the competition was very high from every angle. And in this trap of trial and error
Enterprising Kishore Biyani also got trapped and in this process, the company’s debts also went on breaking.
Now let’s see today ‘Amazon Fresh delivers groceries in 2 hours, ‘Swiggy InstaMart’ in 30 minutes, and ‘Blink-It’ in 10 minutes. Now, in such a scenario, there will be a lot of competition. Plus, in the pandemic and lockdown, offline retail stores D-Mart and Jio-Mart are also increasing their online delivery. In this situation, reserves are not being faced by debt-ridden Big Bazaar.
Amazon is visionary and is a pioneer and global expert in its field. He had already sensed the failed attempt of Future Group and had made a deal with Future Coupons in 2019. Yes, the same deal which is hanging like a sword over the heads of both Future and Reliance today.
It is obvious that through this deal, Jeff Bezos was also looking at his desired position in future coupons through Indian retail. Through that deal, Amazon acquired a 49% stake in Future Group subsidiary, Future Coupons which owns 7.3% shares in Future Retail. And this deal gave Amazon future retail may indirect share and the right to interfere which I am still doing legally.
But again came in 2020 for Coronavirus and for this Future Group, that was the ‘final nail in the coffin’ account. Debt-ridden Future Group from all sides did not get an extension due to the deal with Reliance Industries but also found a shore.
The single-shot objective of this deal was ‘sell-off’ – where Future Group will sell its companies to Reliance and Reliance will repay their loan. Next, in August 2020, Future Group announced a deal worth ₹ 24,713 crores with Reliance and said that this deal would transfer its retail, wholesale, and logistics arms to Reliance Retail.
But, as you know, it has been almost 2 years since this deal and this deal has not been finalized to date, due to Amazon’s intervention as it violated Amazon’s original deal with the Future Group.
Even after many different cases in different courts, no solution was found. So the Supreme Court advised all three companies to sort the peas among themselves. But, still, I have not come to see any concrete results, till now.
The latest news is that Future Group has called a board meeting (April 20, 2022) where all the members of the group company have voted ‘On Reliance’s Rs. 24,713 crore deal’ and ‘whether it will stand in the international court or not’.