Merger of Future value chain and pantaloon retail after ABNL deal with Pantaloon Fashion

1. ABOUT FUTURE GROUP

3. FUTURE GROUP’S VISION
We shall deliver
Everything,
Everywhere,
Everytime for,
Every Indian Consumer
in the most profitable manner.

4. 2007 :- Future Group crosses $1 billion turnover mark.
Specialized companies in retail media, logistics, IPR and brand development and retail-
led technology services become operational.
Pantaloon Retail wins the International Retailer of the Year at US-based National Retail
Federation convention in New York and Emerging Retailer of the Year award at the
World Retail Congress held in Barcelona.
Futurebazaar.com becomes India’s most popular shopping portal.
2008 :- Future Capital Holdings becomes the second group company to make a
successful Initial Public Offering in the Indian capital markets.
Big Bazaar crosses the 100-store mark, marking one of the fastest ever expansion of a
hypermarket format anywhere in the world.
Total operational retail space crosses 10 million square feet mark.
Future Group acquires rural retail chain, Aadhar present in 65 rural locations.

5. LINE OF BUSINESS

6. ORG STRUCTURE – PANTALOON RETAIL INDIA LTD.
PANTALOON
PANTALOON
RETAIL
RETAIL
CENTRAL & FASHION
FASHION
CENTRAL &
BRAND FACTORY ALL
ALL
BRAND FACTORY STATION
STATION
PANTALOON
PANTALOON BLUE SKY
BLUE SKY

7. ORG STURCTURE - FUTURE VALUE RETAIL LIMITED
FUTURE VALUE
FUTURE VALUE
RETAIL
RETAIL
BIG
BIG FOOD
FOOD
BAZAAR
BAZAAR BAZAAR
BAZAAR

8. ORG STRUCTURE – HOME SOLUTIONS RETAIL LIMITED

9. THE DEAL
• Future Group firm Pantaloon Retail has merged its
wholly-owned subsidiary Future Value Retail, which
runs Big Bazaar and Food Bazaar stores, with itself.
• Pantaloon Retail, which will be renamed Future
Retail, will operate as a single holding entity for all
the retail businesses post merger.
• It is essentially a financial reorganization, as
operating profits of Big Bazaar were wiped out
serving debt of Rs 2,700 crore in Future Value Retail
on which the interest outgo was as high as Rs 330
crore.

10. • The stock of Pantaloon Retail India Ltd (PRIL) fell 24% after
Future Group's promoter, announced that PRIL's fashion
business would be demerged and sold to the Aditya Birla
Group.
• Some analysts have expressed concern disappointed that
Future Group had lost its competitive edge in the fashion
space. The transaction saw 65 Pantaloons stores and 25
Pantaloons Factory Outlets being transferred to Peter England
Fashions, a unit of Aditya Birla Nuvo, a company that houses
most consumer-facing businesses of the Kumar Mangalam
Birla helmed conglomerate
• It was sold to PEFRL (Peter England Fashion & Retail) which is
a part of ABNL at 1600 crore and also with a transfer of 1600
crore
• Pantaloon retail to Aditya With a Share Swap Ratio 1:5

11. How to Reduce the Debt ?
• D/E Ratio 0.82 and wanted it to reduce it to 0.54.
• FY11 Balance Sheet Standalone: 2,173.12 Cr Debt Consolidated:6000 Cr.
• Post-demerger, the holding of ABNL in PRIL through its subsidiary PEFRL will be
50.09 per cent.
• The group, laden with an estimated consolidated debt of Rs. 6,000 crore,
• Have finalized plans to exit from stationery joint venture with US-based Staples by
selling its entire stake to the partner for up to Rs. 170 crore.
• It is also mulling stake sale in Future Generali Insurance, a JV with Italian insurer
Generali Group.
• The group may hive off part of its 70% stake in Future Supply Chain (FSC), a supply
management firm. The remaining 30% is held by Hong Kong-based Li & Fung, which
is also interested in hiking its stake in the company.
• In June, the group had sold majority stake in Future Capital Holdings to private
equity firm Warburg Pincus for Rs 560 crore.

12. Synergies
• Cost Reduction
• Restore Investor Confidence (Share Prices
Rose to 153.50 ) (Currently trading at 144.50)
• Reduce Debt