Biyani buys Nilgiris for Rs. 300 crore.

It seems to be a season for mergers and acquisitions, with each day bringing news of a new deal in one sector or another.Recently, Future Consumer Enterprise, a part of Kishore Biyani's Future Group, announced that it had acquired iconic southern supermarket chain Nilgiris.

The company informed the BSE that it has bought a 97.97 per cent in the retail chain. It did not disclose the amount but the deal is estimated to be worth around Rs. 300 crore.

Future Consumer Enterprise is understood to have acquired a 65 per cent stake in Nilgiris from PE fund Actis Capital and the balance from the company's promoters, the Mudaliar family.

The Nilgiri Dairy Farm, the retailer's operating company, will now become a subsidiary of Future Consumer Enterprise.

Actis bought its stake in the southern retail chain in 2006, when it had about 30 stores. The buyout of Nilgiris, with its franchise-operated convenience stores, will help Future Consumer Enterprise expand its footprint in Kerala, Karnataka, Andhra Pradesh, Telangana and Tamil Nadu, where it lacks a broad presence.


HBL