Future Group boss Kishore Biyani, who has always rejected the idea of online retail, is gradually softening the stance and considering his position more carefully.
Biyani is planning to sell at least 10 per cent stake of the company to a global retailer, according to an ET report. He, however, didn’t divulge the name of the retailer.
Importantly, according to media reports, he has already met Amazon’s Jeff Bezos, Walmart and Alibaba to discuss various business opportunities with them.
The development comes after the biggest e-commerce deal in India in which Walmart acquired 77 per cent stake in Flipkart at a valuation of $16 billion. The deal has changed the retail landscape in the country as the world’s biggest offline retail company has acquired India’s biggest online retailer.
Kishore Biyani admitted Walmart buying Flipkart can change the game in consumer durables and IT products. But in groceries, Walmart-owned Flipkart is still a fringe player.
To get an early advantage in the nascent grocery industry in India, Future Group is all set to launch e-commerce app for grocery delivery offering the daily and weekly requirements to consumers.
The Walmart-Flipkart deal seems to have given some jitters to Biyani. Though, he believes that is reasonably strong in categories such as food, fashion and home yet he wants to form an alliance either with Amazon or Walmart.
Putting up a brave face, Biyani said to the newspaper that Future Group has a lead over other retailers in the country and he can shore up his company’s strength as India played host to the world’s biggest e-commerce deal.
The rising interest of Biyani’s into online retail is in stark contrast to his earlier positions. He has always emphasised that physical retail is a threat to online retail, which has a low business share and a high cost of business.