Future Group acquires supermarket chain Nilgiris for Rs 300 crore
Future Consumer Enterprises (FCEL), the food and FMCG (fast-moving consumer goods) arm of the Kishore Biyani-led Future Group, has acquired Nilgiris, which runs a chain of convenience stores in South India, the company said in a statement on Thursday.
The Future Group acquired a 98 per cent stake in Nilgiris from private equity firm Actis, which had invested in the company in 2006 and held the majority stake; and the Mudaliar family, the original promoters of the chain who held a minority stake. The deal was fully settled in cash.
Though the Future Group didn’t disclose the consideration that it had paid for Nilgiris, a person familiar with the development said that the deal was valued at around Rs 300 crore. Actis had been looking to exit its investment in Nilgiris for the last two years.
Bangalore-based Nilgiris is an iconic brand that enjoys wide household recall in the southern states of Karnataka, Tamil Nadu, Andhra Pradesh and Kerala. The brand that was established in 1905 also has its own products portfolio comprising dairy products, baked goods, chocolates and staples. The acquisition will boost FCEL’s revenues exponentially as the Future Group firm’s own revenues were at Rs 343 crore for FY14. The company reported a net profit of Rs 30.41 crore for the same fiscal.
“This acquisition by FCEL will lead to geographical expansion of the convenience store network in Southern India, as currently FCEL’s existing footprint is primarily concentrated in North and West India,” the company said in its statement.