Future
Group, India's largest retailer, is reportedly considering
splitting up its retail chain brands - Big Bazaar, Food
Bazaar and Central Mall - into separate entities, according
to the Financial Express, which cited unnamed sources.
The paper said the group may even list them in the future,
and has hired McKinsey to advise it on the break-up.
It added that the group plans to raise over $1.0bn through
an initial public offering (IPO), and has mandated merchant
bankers Kotak, Enam and JM Financial to lead the offer.
CEO Kishore Biyani denied the report, saying "We
are not implementing any such initiative". However,
the paper claimed its sources confirmed that the group
is realigning the retail chains into separate profit
centres, with the Future Group remaining the umbrella
brand. It said Biyani will make the IPO announcement
in September.
The report also said that Future Group has already
appointed different CEOs to head the various ventures.
Rajan Malhotra is now the head of Big Bazaar, Sadashiv
Nayak has taken charge of Food Bazaar, Kailash Bhatia
will head Pantaloon Apparels, Sanjiv Aggrawal continues
as CEO of Pantaloon Retail, the food line of business
is now being headed by Arvind Choudhury, and Central
Mall and Brand Factory are under Vishnu Prasad.
Source: http://www.kamcity.com
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