Heritage Group in advanced talks to sell retail business to Kishore Biyani’s Future Group
19 Sep 2016
The Rs 2,380-crore Heritage Group founded in 1992 by the current chief minister of Andhra Pradesh Chandrababu Naidu, is in advanced talks to sell its retail business Heritage Fresh to Kishore Biyani's Future Group.
A successful deal will give Future Group a network of over 115 grocery stores in Hyderabad, Chennai and Bengaluru and take its total number of stores to more than 850, catering to over two million customers each month, The Economic Times reported today, citing sources.
Global accounting firm KPMG is advising Heritage Fresh on the deal.
This will be Biyani's fourth acquisition in the grocery retail business since 2012. Its earlier purchases have included the Easyday network from Bharti Retail, New Delhi-based Big Apple and Hyderabad-based Nilgiri's supermarket chain.
The business operates mainly through two divisions - dairy and retail, as well as in small businesses that include bakery and animal feed.
Retail sales accounts for Rs583 crore, nearly a fourth of the group's annual turnover of Rs2380 crore.
Heritage Group also operates renewable energy and veternary products under the flagship Heritage Foods.