Mumbai: Fashion and retail conglomerate Future Group on Tuesday announced the reconstitution and demerger details of the boards of Bharti Retail Ltd and Future Retail Ltd.
The move comes a day after group chief executive officer Kishore Biyani resigned from Future Retail Ltd, one of the group’s largest listed retail companies which operates Big Bazaar and Food Bazaar.
The reconstitution and demerger is part of completion of Future Group’s acquisition of the retail business of Bharti Retail in May last year.
The new board of Bharti Retail, which will hold all the front-end retail chains such as Big Bazaar, EasyDay, fbb, Foodhall, Home Town and eZone, will include Kishore Biyani and Rakesh Biyani as managing director and joint managing director—posts they gave up in Future Retail on Monday.
The board of Bharti Retail, which will later be renamed Future Retail, will also include industry leaders Ravi Dhariwal, Gagan Singh and Shailendra Bhandari.
Rajan Mittal, vice-chairman and managing director of Bharti Enterprises Ltd, will continue to serve as a member of the board of Bharti Retail.
At the time of the announcement of the merger with Bharti Retail in May last year, Future Retail had announced that the combined company will be demerged into two companies—the one on the front-end will retain the name Future Retail and will have 570 stores and a presence in multiple retail formats across 243 cities.
The second, it had said, will be the back-end, investments and infrastructure business, and will be listed separately as Future Enterprises Ltd.
For now, the listed company Future Retail is the merged entity with the back-end infrastructure of Bharti Retail and its own back-end operations and other investments such as Future Generali Insurance. The back-end company, Future Retail, will subsequently be renamed Future Enterprise.
Dhariwal till recently was chief executive officer of Bennett, Coleman and Co. Ltd and before that, associated with Pepsico India Holdings Pvt. Ltd. He also serves as a senior advisor to private equity firm TPG Growth.
Singh, who currently serves as chief executive officer-business at Jones Lang LaSalle India and is chairperson of the firm’s Sri Lanka operations, brings in her rich expertise in operations and real estate, the company said.
Bhandari is a former managing director and chief executive officer of ING Vysya Bank and managing director and chief executive of Centurion Bank of Punjab. He has also served as the head of private equity at Tata Capital and as executive director at HDFC Bank Ltd.
C.P. Toshniwal, a Future Group veteran, has been appointed as chief financial officer of the company.
Kishore Biyani steps down as managing director of Future Retail but will continue to be part of the Future Retail board.
As part of this merger, Bharti Retail will be listed on the National Stock Exchange and BSE. The record date to ascertain the entitlement of Future Retail shareholders to receive Bharti Retail shares has been fixed as 12 May.
Subsequent to the allotment of shares, the company will be submitting the application for listing by the end of May. Future Retail continues to be listed on both these exchanges.