India’s Future Group receives legal notice from retail company Amazon

Date: 2020-10-09   Author: Pankaj Singh  Category: #news

India’s Future Group receives legal notice from retail company Amazon

E-commerce conglomerate Amazon has reportedly sent a legal notice to one of the most prominent retail chain in India, Future Group, also the second-largest in the nation, on the grounds of breaching the terms of its contract. If sources are to be believed, Future Group seems to have violated the contract with Amazon by selling a substantial percentage of its business to Reliance Retail.

For the uninitiated, recently in August, Future Group declared that it will be selling its retail & wholesale business, along with its logistics and warehousing business, to Reliance Retail, at a valuation of USD 3.4 billion.

Apparently, Future Group and Amazon had inked a deal last year, when the latter purchased a stake of 49% in a group entity owned by Future Group’s retail business – Future Coupons. The deal was liable to make Amazon the owner of 3.58% in Future Retail, in addition the right of first refusal to buy more shares in Future Retail, both via entities as well as directly. TV network ET Now also states that as per this deal, Future Retail was barred from entering to partnerships with certain firms.

The legal notice however, has confused many, since Amazon seemingly had plans to purchase a huge multi-billion-dollar stake in India’s largest retail chain, Reliance Retail. E-commerce commands between 3% to 7% of all retail sales in India. To that end, Amazon’s deal with Reliance Retail had been viewed by many as a crucial step for the American company to strengthen its foothold in India. For the record, Amazon, since the last 7 years, has poured in over USD 6.5 billion in the country’s local business.

Amazon apparently confirmed that it has indeed filed a legal notice however, the company did not elaborate on the same, as the matter is “sub judice.” Future Group and Reliance Retail have not commented at all. In fact, Future Group, as of Wednesday midnight, has not disclosed even the notice on the stock exchange.

Source Credits:

About Author

Pankaj Singh linkdin-boxtwitter

Pankaj Singh

Pankaj Singh Develops content for Algosonline, Market Size Forecasters, and a couple of other platforms. A Post Graduate in Management by qualification, he worked as an underwriter in the UK insurance domain before deciding to switch his field of profession. With exp...

Read More

Post Recommendents

Antenatal Screening Market Share, By Product Analysis, Application, End-Use, Regional Outlook, Competitive Strategies & Forecast up to 2028

Author: Ashwin Naphade

Global Antenatal Screening Market, 2022-2028 Research Report provides crucial statistics on the market status of the Global Antenatal Screening manufacturers and is a respected source of guidance and direction for companies and individuals interes...

Pediatric Vitrectomy Market Size | Global Industry Analysis, Segments, Top Key Players, Drivers and Trends to 2028

Author: Ashwin Naphade

Global Pediatric Vitrectomy market report provides major statistics on the state of the industry and is a valuable source of guidance and direction for companies and individuals interested in the market.

The Pediatric Vitrectomy market repor...

Legionnaire Disease Testing Market Comprehensive Analysis, Share, Growth Forecast from 2022 to 2028c

Author: Ashwin Naphade

This report studies the Global Legionnaire Disease Testing market status and outlook of global and major regions, from angles of players, regions, product types and end industries; this report analyzes the top players in global and major regions, ...