NEW DELHI/MUMBAI: Kishore Biyani is on a buying spree as Future Group has now snapped up Sangam Direct chain of grocery stores from Wadhawan Holding, a company owned by the promoters of Dewan Housing FinanceBSE 1.10 % Corp. Ltd (DHFL), further consolidating his position as the country’s largest grocer.
According to sources, Biyani’s group will purchase three dozen stores network from Wadhawan mainly through a “lease transfer” way instead of cash.
A Future Group spokesperson said the company does not comment on market speculations. A Wadhawan spokesperson said: “They are speculative news in the market and would not like to comment on the same.”
Wadhawan operates the stores under Sangam Direct (that was earlier known as Sabka Bazaar stores) in Delhi NCR and in Bengaluru. The sources said Sangam Direct business has a revenue of about Rs 100-150 crore.
This is the fourth acquisition for Biyani in as many years. Prior to that Future Group has snapped up south-based Nilgiris chain, New Delhi convenient store chain Big Apple as well Easyday network of retail business from Bharti Retail.
ET had reported on Monday, that Future Group is in advanced talks to acquire the retail business of Hyderabad-based Heritage FoodsBSE 1.28 % Ltd.
Hyderabad-based Heritage Foods operates two flagship divisions — dairy and retail — and has interests in small businesses, including bakery and animal feed. Retail accounts for nearly a fourth of the overall business, with sales of Rs 583 crore, up 18% last fiscal.
It operates more than 115 Heritage Fresh stores of 2,500 square feet each on average, serving more than two million customers every month in the three southern cities.
Future Group operates more than 700 stores at present in 221 cities spanning around 13 million square feet of retail space and the country’s largest listed retail group enjoys an annual customer footfall of 295 million to its stores.
