Tuesday, March 18, 2008

Future Capital picks 70% in Godrej's rural initiative

Future Capital takes a step ahead in it's Rural Retail Masterplan with a 70% stake buyout from Godrej's Aadhar, a part of Godrej Agrovet, which will be spun off into an SPV. The Future Group will intially scale up Aadhar as supply chain of agricommodities. Aadhar may also become a distributor of financial products and consumer finance.
Both Mr. Biyani & Goderej refused to comment on the deal.

About Aadhar
Aadhaar offers an array of products and services to rural households including basic food, grocery, apparel, footwear, furniture, kitchenware, home appliances, banking, postal services and pharmacy. The first Aadhaar outlet opened in December 2003 in Pune district. Since then, 50-60 Godrej Aadhaar Centre outlets have been set up across Maharashtra, Gujarat, Punjab, Haryana, Andhra Pradesh, Tamil Nadu, Orissa and West Bengal. It launched the outlets as a hub-and-spoke model, with 10,000-square foot outlets catering to various consumers in the countryside.

About Godrej Agrovet
Godrej Agrovet is a key player in the farm segment with a large presence in cattle and poultry feeds. In recent months, the group has been evaluating various rural initiatives as part of a larger plan to step up retailing in the hinterlands.

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