Future Group buys Nilgiri's convenience stores chain
New Delhi: Kishore Biyani-led Future Consumer Enterprise (FCE) has acquired convenience stores chain Nilgiris from UK-based private equity firm Actis. The deal is valued between Rs 175 crore and Rs 200 crore.
FCE has acquired 97.97 per cent stake of The Nilgiri Dairy Farm and its subsidiary companies as part of the transaction.
The Nilgiri Dairy Farm is directly, and through its subsidiaries, engaged in the business of licensing franchisee rights to third parties for operating convenience stores under the Nilgiri's brand, manufactures food, grocery, chocolates, dairy and other products and is involved in trading in general merchandise and imported products. It also owns a portfolio of brands in these products.
Nilgiri's has 1,405 outlets spread across Kerala, Karnataka, Andhra Pradesh and Tamil Nadu and FCEL gets to expand geographically by increasing its footprint of convenience stores in south India with this transaction.
The company was formed in 1905 by Mudaliar family. Private equity firm Actis picked up a majority stake in the company in 2005. It is estimated to have put around Rs 300 crore in the firm.