The major factors for a brands failure are discussed. The document then provides an overview of Future Group, an Indian conglomerate founded by Kishore Biyani in 2007. It operated brands in retail, FMCG, fashion, and home sectors. However, Future Group faced financial difficulties and in 2020 merged many of its companies to Future Enterprises Limited. Reliance Industries then acquired Future Group's retail, wholesale and logistics business for Rs. 24,713 crore. This deal helped expand Reliance's offline retail presence and provided benefits to its shareholders. Amazon had previously acquired a 49% stake in a Future Group firm, which entitled it to veto the Reliance deal due to clauses in their contract.

1. Future Group
Rise & Fall

2. What do you think are the major factors for a brands failure?

3. About the Group
Rewrite Rule, Retain Values - core idea behind the business of Future group. The
group is the Indian Conglomerate company, founded by Kishore Biyani 2013. The
brand has a significant presence in Indian Retail, FMCG, Fashion, and Home.
Future Group’s value chain operates with its nation-wide network, reaching the
smallest towns and cities with its sourcing and manufacturing units, and integrated
distribution system.

4. Logo & Tagline

5. Brands that shape Consumption
Retail

6. FMCG

7. Fashion

8. Home

9. Kishore Biyani
- Known as the King of Retail Industry in India
- Autobiography “It happened in India”
- Received the “CNBC Awaaz Consumer
Awards” (2009)
- Pantaloon Retail was awarded as the
“International Retailer of the Year” (2007)
- “Entrepreneur of the Year” by Ernst & Young
(2006)
- “Retail Face of the Year” Images Retail
Awards (2005)
- “Most Admired Retailer of the Year” (2004)
- “CEO of the Year” (2001)

10. Business Model
- They owned Small store network, instead of using franchisee model
- Omni-channel network made their presence everywhere, from online to brick-
and-mortar stores
- Faster stock to cash conversion aimed to optimize product cycle. This helped
them in better productivity and stock velocity, enhanced shopping experience
for consumer by better availability, and assistance in self funding the growth
- Self-owned stores, logistics and warehouses

11. Timeline

12. Downfall started

13. Crisis

14. The Deal
Future group merged the major companies into Future Enterprise Limited (FEL)
key companies in the enterprise include Future Retail, Future Consumer, Future
Lifestyle Fashion, Future Supply Chain, and Future Market Networks
Reliance Industries announced this acquisition of retail & wholesale, and logistics
& warehousing business at lump sum of Rs. 24,713 crore. In which they will get
around 1904 stores which were operated by Future Group
Post the transaction, FEL will retain the manufacturing and distribution of FMCG
good and integrated fashion sourcing and manufacturing business and its
insurance joint ventures.

15. Benefit for Reliance?
RRL's retail strategy, could be divided into three categories: offline, online and
new commerce (where it is working with Kiranas via a B2B2C model). RRL has
11,784 stores across its formats of consumer electronics, fashion and lifestyle and
grocery
Despite its recent online roll out through Jio Mart, RRL is keen to expand its offline
presence. Future Retail's businesses are a good fit in RIL’s retail that helps it
expand its offline retail presence and would see further improvement in margins
due to improving scale
This deal could also help RIL hasten its plans for an IPO which is slated in the
next three-five years.

16. Listed companies
Future Group Companies listed on market:

17. Benefits to Shareholders

18. Role of Amazon
- Amazon last year bought a 49% stake in one of Future's unlisted firms,
Future Coupons Ltd, with the right to buy into flagship Future Retail after a
period between 3 and 10 years
- Future Coupons owns a 7.3% stake in Future Retail. Which entitles Amazon
to have the right to first refusal
- Reliance and 15 other major competitors were specifically mentioned in the
contract where they cannot sell their stakes
- It is a common practise followed by the companies worldwide, so as to block
the competitors from acquiring them