Financial

focus
A L O T I S A T S T A K E W I T H WH A T ’ S G O I N G ON B E T W E E N
A M A Z O N A N D R E L I A N C E O V E R F U TU R E D E A L .

Here's what the dispute, seen as key to deciding who gets an

upper hand in one of the world's fastest-growing retail
markets, is all about.

TUG OF WAR
In 2019, Future & Amazon,
became partners via Gift
voucher unit. The US based
company invested $200million
in Future Coupons and acquired
its 49% stake. The Future
Coupon holds 9.82% stake in
Future Retail, that gives
Amazon 4.81% stake in future
Retail. The Kishore Biyani-led
Future Group got caught in the
tussle between two large
corporations after Amazon
objected to Reliance’s August
2020 offer to buy Future
Retail’s stores and warehouses
for 247.1 billion rupees ($3.4
billion). 

AMAZON’S ARGUEMENT
According to Amazon it became a stakeholder in the company, they had non-
compete clause that forbid FRL (Future Retail) from selling assets to certain
companies, which also involves Reliance. It also included dispute settlement clause
should be laid under Singapore Arbitration Centre.
 What all
Future Group Popular brands
Experience vs. Discipline

In 2020 Future Retail
announced a $2.4 billion
deal with reliance retail
ventures Ltd for sale of
retail and wholesale
business. Amazon argues
that the 2019 deal gave
them a special right over
future’s assets. However,
Future denies and says
happened
during
COVID?
Future Retail Ltd (FRL), along with its promoters, has
approached the High Court of Delhi against the orders BIG BAZAAR
passed by the Singapore International Arbitration BRAND FACTORY
Centre (SIAC) last week related to the Future-Reliance FOOD BAZAAR
HOMETOWN
deal. KORYO
FBB
that its employees will (Competition Commission FOOD HALL
E ZONE
become jobless if its deal of India) that Amazon is CENTRAL
with Reliance fails. Future making contradictory FOOD RIGHT
Group is at $4 billion debt statements about their
Reliance's consolidated position with 2019 deal. CCI in last
Future "will further restrict competition December suspended
in the Indian retail market.
approval of 2019 deal
Amazon
saying there was “a
with Reliance Group. deliberate design on the
Future Complained to CCI part of Amazon to
suppress the actual scope”

WHAT IS AT STAKE?
The FRL has around 1750 retail stores in around 400+ cities in India. Amazon for gaining benefit by dealing with a
large retailer like Future Retail and gain massive advantage in customer experience. For Reliance as well, a deal with
Future group will establish its brand in smaller towns and cities will emensely help Reliance in Delivery to small
towns. RIL will also establish itself as a market leader in both segments: OFFLINE & ONLINE.
New twist in this War
The Financial Institutions and banks which were Future group’s Secured creditors have voted against its deal with Reliance according to a regulatory filing.
More than 75% of shareholders had casted there vote in favour of Reliance but they also needed the same from its secured creditors as well. In turn around 70%
were of secured creditors were against the the deal and only 30 % had casted in favour of Reliance.
Amazon has dragged Future Group & its promoters to SIAC (Singapore International Arbitration Centre, where an interim order was passed by Emergency
Arbitrator in favour of Amazon in Oct’20. Thereby halting FRL from taking steps further till the case is decided.