Future Retail leading wholesale manufacturing company has filed a case against the leading online E-commerce platform, Amazon. Future Retail owns several wholesale shops around Indian including Big Bazaar in various regions of different parts of the country. The company has shown active internet in expanding its business by investing millions of dollars in the last couple of years. It was seen as a successful business model that generated a decent profit over the years. The company has great knowledge of supply chains and customer relationship which lead to success in past years. Recently the company has planned to sell its local stores to the Indian businessman Mukesh Ambani, this was seen as a great strategic move for Reliance in expanding their retail business in India. Already Ambani has shown an active interest in expanding its base for reaching the local indivudual through their brand store. By integrating Future Retail shops with their retail business will make their business go big by improving their supply chain logistics. Along with Future Retails, Reliance is said to be eyeing some of the big players in the Indian retail market.
Meanwhile, Future Retails has moved into the court against leading online platform Amazon ‘interfering’ with its deal to sell its retail business to Reliance. Along with their retails business Future Retail has also planned to sell their wholesale, logistics, and warehousing units for a net worth of Rs 24,713 crore. The deal has undergone several stages of discussion and was expected to be signed within this year. Amazon with a motive in dominating the Indian Retails market has been experimenting with different strategies that could benefit the company in the long run. They have been talks with chains of the supermarket for integration. As the company has established its stable version of an online platform that has been generating billions of dollars worldwide now the company has started concentrating on the local stores for a better reach. The lawsuit files by Future Retail in Delhi High Court claims that “in relation to seeking necessary reliefs against Amazon.com NV Investment Holdings LLC (“Amazon”) from interfering with the Transaction by misusing an Interim Order dated 25th October 2020 issued by an Emergency Arbitrator, appointed by the Singapore International Arbitration Centre (SIAC),”.
The interim order by Singapore International Arbitration Centre (SIAC) which was raised in October of this year has restricted the company from selling their stocks with other companies. To inherit their losses, Future Retail has sold a 49 percent stake in form of Future Coupons. This deal was signed with Amazon for a whopping amount of Rs 2,000 crore last year. Future Retail has also agreed to sell its products through the online platform Amazon which gave additional options like reaching the customers within 2 hours. This short delivery time helps Amazon is experiencing a positive response from their customers. If the deal between Reliance and Future Retail goes as per the plan, Reliance will be acquiring one of the Indian leading retails shops in various cities which helps them in expanding their business.