Future Cons buys JV partner Godrej in rural supermart Aadhaar in $10M stock deal

Future Cons buys JV partner Godrej in rural supermart Aadhaar in $10M stock deal

By Anuradha Verma

  • 23 Feb 2015

Future Consumer Enterprise Ltd (FCEL) has acquired the remaining 30 per cent stake it didn't own in Aadhaar Wholesale Trading and Distribution Limited, a rural retail distribution unit, from Godrej Agrovet Limited and Anamudi Real Estates LLP, in a stock-swap deal, according to a stock market disclosure.

As per the agreement, FCEL, the food and FMCG arm of Kishore Biyani-led Future Group, has issued and allotted an aggregate of 45.9 million equity shares of the company to Godrej Agrovet and Anamudi Real Estates LLP.

The deal, which was cleared by shareholders last month, entailed issue of shares at Rs 12.74 each aggregating to a deal worth Rs 58.5 crore (over $9 million). At the current market price this is worth around Rs 68 crore ($11 million).

Godrej Group has picked 2.7 per cent stake in FCEL in the process.

FCEL, formerly known as Future Ventures India, had picked 70 per cent stake in Aadhaar for Rs 30.18 crore from its promoter Godrej Agrovet in March 2008. It had also invested more money in the firm in January 2010, and March 2010, but that did not change its holding as other shareholders also re-invested.

Aadhaar is positioned as a rural supermarket and currently has 40 stores spread over 100,000 sq ft across Gujarat and Punjab. It also operates cash & carry store by the name Aadhaar Wholesale Market.

It has 1,500 stock-keeping units or products, including processed food, personal and home care, general merchandise items and kitchen appliances.

Meanwhile, FCEL has also picked up 51 per cent stake in food and confectionery manufacturer Sublime Foods Private Limited through a fresh issue of shares.

Sublime Foods, which is a JV between FCEL and Bhandari Group, manufactures and distributes processed food items like specialty sauces, salad dressings, cooking pastes, spreads and dips. It has a production facility in the company's India Food Park located in Tumkur Karnataka.

Future Group had earlier said it will have strategic partnerships with firms setting up operations in its food park.

(Edited by Joby Puthuparampil Johnson)