Reliance Retail among seven others in race for Future Supply Chain Solutions

Reliance Retail Ventures and five others have submitted expression of interest (EoI) for acquiring Future Supply Chain Solutions, a Future Enterprises Ltd company.

In an exchange filing, Future Supply Chain Solutions has issued a list seven prospective resolution applicants that has only one big name of Reliance Retail ventures. The others prospective resolution applicants include One City Infrastructure Private Limited, Globe Ecologistics Private Limited, Shanti GD Ispat & Power Private Limited, Camions Logistics Solutions Private Limited, Tatkal Loan India Private Ltd and Sugna Metals Limited.

The objections on the Prospective Resolution applicants have been invited till 4 June 2023 and the final list of the Prospective Resolution Applicants will be submitted on 14th June 2023 by the Resolution Professional.

It must be mentioned here that Reliance Retail Ventures, which was earlier vying for Future Retail, has been reported to have withdrawn from the race to acquire the company.

The insolvency petition against Future Supply Chain Solutions was filed by DHL Ecommerce (India) Private Limited, and the same was admitted by the National Company Law Tribunal (NCLT) in January this year. The company owed Rs 623 crore to different creditors including Rs 542  crore to financial creditors.

Future Supply Chain Solutions is a third-party supply chain and logistics service provider, promoted by Future Enterprises Limited, which is promoted by Kishore Biyani.

It has a clientele from across various sectors in India, including retail, fashion and apparel, automotive and engineering, food and beverage, fast-moving consumer goods (FMCG), e-commerce, healthcare, electronics and technology, home and furniture and ATMs.

The company has been facing financial distress and has been making losses. In 2021-22, it made a loss of Rs 697 crore on a revenue of Rs 685 crore. In the June 2022 quarter, the company made a loss of Rs 30 crore on a revenue of Rs 78 crore.

According to the auditors of the Future Supply Chain, the entire net worth of the company has been eroded due to losses incurred in the previous year and its current liabilities exceeded its current assets which indicates a material uncertainty exists, that may cast a significant doubt on the company’s ability to continue as a going concern.

At the end of June 2022 quarter, the company’s net worth was a negative Rs 170 crore.

Also See: Another Future Group company — Future Supply Chain Solutions — faces insolvency proceedings