Future Consumer Enterprise Acquires Nilgiris

Future Consumer Enterprise (FCEL) today completed the acquisition of the Nilgiris convenience store chain in the southern states of Kerala, Karnataka, Andhra Pradesh and Tamil Nadu.

Nilgiris, an iconic brand with origins dating back to 1905 and a household name in South India, operates a franchisee operated convenience store chain with 140 stores in key urban areas in the four states. FCEL acquired 97.97 per cent equity shares of The Nilgiri Dairy Farm (NDFPL). NDFPL is directly, and through its subsidiaries, engaged in the business of licensing franchisee rights to third parties for operating convenience stores under the 'Nilgiris' brand; manufacturing food, grocery, chocolates, dairy and other products; and trading in general merchandise and imported products.

FCEL's existing portfolio of brands include Sunkist, Tasty Treat, Golden Harvest, Premium Harvest, Sach Ektaa, CleanMate and CareMate will be channelized through Niligiris store network. Nilgiris branded bakery and dairy products will be channelized across Future Group's existing channels including Big Bazaar, Foodhall and Aadhaar and also extended to other modern retailers. Additionally, Nilgiris' expertise in running a successful franchisee network will be leveraged to expand the existing footprint of convenience stores via a franchisee model. This acquisition by FCEL will lead to geographical expansion of the convenience store network in southern India, as presently its existing footprint is primarily concentrated in north and west India.

Commenting on the acquisition, Kishore Biyani, Group CEO, Future Group said, "FCEL's acquisition of Nilgiris, a leading food and grocery convenience store chain in South India having a unique portfolio of food brands supported by its own manufacturing facilities for dairy and bakery, is another step towards building a robust convenience store network in India. This acquisition is synergistic as it enables strengthening and expanding convenience stores through franchises in an asset light model as well as brings in new manufacturing capabilities and brands within the company."

Shares of FCEL were trading at 10 per cent upper circuit on Friday after the company completed acquisition of the Nilgiris convenience store chain.