US office supply chain Staples Inc plans to buy out its Indian partner Future Group's 39 per cent stake in its wholesale joint venture, Staples Future Office Products, for about $35 million (Rs1,500-2,000 crore), reports quoting sources connected with the development said.
Staples Future Office Products provides stationery goods mainly to large Indian corporates.
The deal, expected to be announced in mid-July, will take Staple's stake in the joint venture to 89 per cent from the existing 50 per cent.
The remaining 11 per cent is held by the current heads of the joint venture and arrangements are currently being worked out. A deal will most likely to be finalised by next month.
The government permits 100 per cent ownership in wholesale and cash-and-carry operations in single brand sales although it is yet to open up multi-brand retail outlets.
The market for office stationery in India is estimated at Rs10,000 crore and the acquisition will help Staples to capitalise on the huge potential.