Future Retail buys Foodworld supermarket chain for Rs 41 cr

Kishore Biyani-promoted Future Retail has bought Foodworld, a supermarket chain that is popular in Bangalore, for Rs 40.79 cr in cash.

The acquisition of the grocery-focused retail chain will strengthen Biyani’s existing portfolio of super markets, particularly the smaller stores under the EasyDay brand.

Foodworld had revenue of Rs 119 cr for the year ended March 2018, down from 130 cr in the previous year and Rs 141 cr in the year before that.

“The proposed acquisition would result in further consolidation of retail business of Future Retail Ltd,” the company said, adding that it would also result in synergies in the operation of the company’s own network.

The deal is expected to be completed in 10-12 weeks, it added.

The net worth of the acquired business is Rs 8 cr.

Future Retail, being the biggest organized retailer in India, has been a go-to destination for smaller players looking to sell out.

Among its big acquisitions have been those of EasyDay stores from Bharti Retail and HyperCity from Shoppers Stop.

However, it still faces stiff competition from Avenue Supermarts Ltd, which runs its chain under the DMart brand.