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Biyani`s new plan to split Big Bazaar

Future Group to restructure Big Bazaar which will be executed on two fronts

July 09, 2008  |  comments ( 0 )  | 
A new innovative plan has been adopted by the Future Group to restructure Big Bazaar which will be executed on two fronts. The Group has planned to bifurcate Big Bazaar into a front-end and back-end. Their idea is to split profits for both the entities` operations and separate the taxation structure and ownership patterns. The front-end operations would be based B2C format. However, once this is done, it is reportedly said that for the back-end operations Future Group will look for a joint venture with a foreign cash-and-carry retailer. If this is done, the Group will be at a par to compete with Bharati which already has an alliance with Wal-Mart for their wholesale cash-and-carry and back-end supply chain management in India. However, if the Group unites with an international player for cash-and-carry model, it would be fascinating to watch whether the Group would seek participation for the front-end of the business, obviously if the law consents.
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