Kishore Biyani opened the first retail store in Kolkata at 26. He will start reviving at 60
Kishore Biyani is going to be close to 60 years old now. Friends are known as KB. At the age of 26, he started retail by opening Pantaloon’s first store. They have sold everything at 59. There was no other way to repay the debt on the Future Group company of KB, a retail giant. The company had defaulted on payments. In such a situation, Mukesh Ambani’s retail company helped KB to overcome this.
Kishore Biyani struggling to repay the fund for a long time. On Saturday, he successfully sold all the businesses of Future Group for Rs 24,713 crore. KB, which started the shopping of convenient retail in the country, started its business in 1987 by launching Mans Wear. Later it’s named Pantaloon.
Biyani fell because of competition and debt
Biyani struggled to save the retail business. He constantly tried to raise capital. However, during this competition, they lagged Reliance in the same way as Vodafone and Airtel were behind in telecom. Vodafone had to join hands with Idea to save its existence. Today Airtel and Vodafone are struggling for funding in terms of AGR. While Jio remains the king in telecom.
Mukesh Ambani will achieve reign as a telecom. Ambani’s future will improve with future deals. Reliance Industries will have a monopoly in retail and telecom. Opponents will now have to make a lot of strategies to break it.
They sold stake Birla in 2012
In 2012, Biyani sold a majority stake in Pantaloon to Aditya Birla NOVO for Rs 1,600 crore. Out of this, there was a debt of 800 crores. In 1992, he raised the money for expansion by listing the same pantaloon on the stock exchange. However, they never looked back after that. He built logistic and other facilities from then until now.
They sold stake to American company
In 2012, Biyani raised funds by selling a stake in Future Capital Holdings to US private equity Warburg Pinnacus. However, he later sold the entire stake to American company Staples. At that time the group had a debt of 5 thousand crore rupees. Similarly, in 2013, he sold a small stake in Future Lifestyle Fashion to BIBA Apparels. This company is owned by Anita Dongre. Biyani had received Rs 450 crore for this.
Last year, they sold the stake in Future coupons
In August last year, Biyani sold a 49 percent stake in Future Coupons to Amazon. Future Coupons had a 7.3 percent stake in Future Retail. Biyani’s Future Group came into financial trouble earlier this year. This happened when Future Retail failed to pay the debt. The banks then seized the pledged shares of the company. Biyani was the 80th richest businessman on the Forbes list in 2019.
When rating downgraded
Likewise, several rating agencies downgraded the company. In this, Standard & Poor’s and Fitch downgraded Future Retail’s credit rating. At present, Future Group has a debt of Rs 13,000 crore. After the deal with Reliance Retail, Future Enterprises Limited will still manufacture and distribution of FMCG goods. In addition, integrated fashion will also be in the sourcing and manufacturing business.