ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintTitle ChevronIcon Twitter
Retail

Amazon hits India's Future Group with claim over Reliance deal

US giant accuses Indian retailer of contract breach as fight for market heats up

The premium food superstore Foodhall is one of Future Group's promising brands in India's crowded retail market.   © Reuters

BENGALURU, India (Reuters) -- Amazon.com Inc said on Wednesday it has sent a legal notice to a promoter of Future Group, alleging the Indian retailer breached the terms of its contract by signing a deal with Mukesh Ambani's Reliance Industries.

The online retail giant last year acquired a 49% stake in Future Coupons Ltd, the promoter entity which owns a 7.3% interest in Future Retail, the operator of more than 1,500 stores in India including grocery chain Big Bazaar.

Amazon's investment in Future Group came with contractual rights that include a right of first refusal and a non-compete-like pact, a source told ET Now, which first reported the news.

The e-commerce firm, in its legal notice, cited a contract arrangement that included "a restricted list" of companies Future was not supposed to enter deals with, ET Now said.

An Amazon spokesperson confirmed the company had started the proceedings.

Amazon, Reliance and Walmart Inc's Flipkart are in a battle to gain market share in India, where millions of middle class customers are newly adopting online purchases of food and groceries due to the COVID-19 pandemic.

Reliance said in August it would acquire the retail and wholesale business as well as the logistics and warehousing business of Future in a deal valued at $3.38 billion.

The oil-to-telecoms group, whose retail operation already runs close to 12,000 stores, is expanding its so-called new commerce venture, which ties neighborhood stores to Reliance for online deliveries of groceries, apparel and electronics in a space currently dominated by Flipkart and Amazon's Indian arm.

Future Group was not immediately available for comment. Reliance declined to comment.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends January 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to Nikkei Asia has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more