The Downfall of Future Retail

The story of Future Retail is a classic story of riches to rags. Once a market leader of the retail
segment, Future Retail's poor management eventually led the entire company to an
unfortunate sell-off.
The Journey of Future Retail
Kishore Biyani, a graduate from H.R. College, Mumbai, and scion of a business family, embarked
on an entrepreneurial journey by establishing Manz Wear, a garment manufacturing company in
1987. Despite initial success, Biyani shifted focus to retail in 1997 with the launch of Pantaloons.
His greatest triumph came in 2001 with the introduction of Big Bazaar, a supermarket-style store
resembling bustling Indian marketplaces. Biyani expanded his retail empire, acquiring various
brands and opening numerous stores across the country. However, aggressive expansion led to
financial strain, worsened by the entry of global players. Eventually, Future Retail faced
mounting debt and, in 2020, sold its retail business to Reliance Retail for ₹24,713 crores.
What Went Wrong?
Future Group, led by Kishore Biyani, faced significant challenges due to excessive diversification.
The company ventured into insurance, financial services, real estate, and even invested in
Bollywood movies. However, this expansion resulted in mounting debt and the need for
constant restructuring. To alleviate the financial strain, Biyani sold off successful ventures like
Pantaloons. The rise of online platforms like Amazon and Flipkart further intensified the
competition, while the COVID-19 pandemic exacerbated Future Retail's struggles. Amidst these
difficulties, Reliance Retail entered the picture, acquiring Future Group's retail business. The
deal faced objections from Amazon, leading to legal battles and uncertainty regarding its
finalization. Despite regulatory approvals, the feud between Amazon and Future Group
continues, leaving the future of the deal uncertain.