Ambani Outpaces Biyani (Reliance Buying Big Bazaar) : Presented by

Ambani outpaces
Biyani (Reliance
buying Big
Bazaar)
PRESENTED BY
-
OSD Group 9
Introduction
Issues of Future Group that

lead to its downfall
Contents
Factors that made
Reliance invincible
Organizational Structure and Design

of Future Group
Organizational Structure and Design of

Reliance Industries
How Reliance handled the situation

Introduction
In August 2020, Reliance signed an agreement to buy Future Group's retail, wholesale, logistics,
and warehousing businesses for $3.4 billion. This acquisition allowed Reliance to expand its
retail footprint in India and strengthened its position as the country's largest retailer.
Prior to the acquisition, Biyani's Future Group had been struggling with debt and was in talks to
sell its businesses to Reliance. However, the deal was challenged by Amazon, which had
invested in Future Coupons, a Future Group entity. Amazon argued that the deal violated its
agreement with Future Coupons, which gave it the right of first refusal if Future Group were to
sell its businesses to a third party. The case is still ongoing.
In contrast, Reliance has been expanding rapidly in recent years through various acquisitions
and partnerships. It has diversified into sectors such as telecommunications, digital services,
and energy, and has become one of India's most valuable companies.
Overall, Ambani's Reliance has outpaced Biyani's Future Group due to its strong financial
position, strategic acquisitions, and diversification into various sectors.
Issues of Future Group
that lead to its
downfall
Heavy Over-expansion
Inability to
compete with
COVID-19
pandemic
debt
burden
Future Group had expanded
rapidly in the past, opening
online The COVID-19 pandemic had
several new stores and launching retailers a significant impact on the

Indian economy and the
Future Group had accumulated new businesses. However, this
a significant amount of debt, Online retailers such as Amazon retail sector. Future Group
expansion was not always
which had been a concern for and Flipkart had captured a was forced to shut down its
profitable, and the company
investors for several years. significant portion of the Indian stores during the lockdown,
struggled to generate enough
This was mainly due to the retail market. Future Group was resulting in a significant
revenue to cover its costs. In
acquisition of Bharti Retail, slow to adapt to the changing decline in revenue. The
some cases, Future Group had to
which added to the company's market conditions and did not company had to lay off
shut down stores that were not
debt burden. The high debt invest enough in its online several employees and
performing well, which affected
levels made it challenging for presence. As a result, the renegotiate rent agreements
the company's financial
the company to invest in company faced intense with landlords to survive.
performance.
growth initiatives and generate competition from online retailers,
profits. which affected its revenue and
Factors that made Reliance
invincible
Diversification
Strong financial
position Innovation
Leadership
Organizational Structure
and Design of Future
Group
Decentralized
Slow adoption
Organizationa
of
l Structure
technology
While this can be an advantage in terms of flexibility Future Group was slow to adopt new technologies
and innovation, it can also lead to a lack of and e-commerce. While other retailers were investing
coordination and consistency the in online platforms and digitizing their operations,
across This structure may to Future Group was slow to react. This led to a decline
organization have
communication led decision-making, and a
gaps, siloed in sales and market share as more consumers shifted
.lack of cohesion across the company. towards online shopping.
Organizationa Centralized organizational structure
Reliance Industries Limited (RIL) has a highly centralized
l Structure organizational structure, with a clear chain of command and a well-

defined hierarchy. This ensures that decisions are made quickly and
efficiently, and that everyone in the organization knows their roles
and Design
and responsibilities.
Acquisition Strategy
of Reliance The company has acquired several companies in recent years,
Industries
including Jio, Netmeds, and Hamleys, among others. These acquisitions
have helped Reliance to expand its reach in the telecommunications,
e- commerce, and retail sectors, among others.
Technology & Innovation

The company has implemented several technological solutions
across its supply chain, including advanced data analytics, AI-
powered inventory management systems, and blockchain-based
traceability systems.
How Reliance
handled the
situation
Pursuing the deal Confidence in its legal position
Negotiating with Amazon Seeking regulatory approval
Building public support Engaging with stakeholders

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Ambani outpaces

Issues of Future Group that

Organizational Structure and Design

Organizational Structure and Design of

How Reliance handled the situation

several new stores and launching retailers a significant impact on the

l Structure organizational structure, with a clear chain of command and a well-

Technology & Innovation

Negotiating with Amazon Seeking regulatory approval

Building public support Engaging with stakeholders

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