Future Group is in advanced talks to acquire the retail business of Heritage Foods , a deal that would give Kishore Biyani sway over a network of more than 100 grocery outlets in Hyderabad, Chennai and Bengaluru, according to people aware of the development.
The Rs 2,381-crore Heritage Group was founded in 1992 by N Chandrababu Naidu, who is currently chief minister of Andhra Pradesh. If the transaction goes forward, this will be Biyani’s fourth acquisition in as many years, as his Future Group consolidates its position, especially in grocery retail. Other purchases since 2012 include the Easyday network from Bharti Retail, New Delhi-based Big Apple and Hyderabad-based Nilgiri’s supermarket chain. “Contours of the deal are still being worked on — how Heritage Fresh will be merged within Future Group and whether the transaction could involve any share swap, apart from cash component,” said one of the people cited above. Heritage Foods did not respond to an email sent on Friday. A Future Group spokesperson said it wouldn’t comment on speculation.