Pantaloon Retail’s (PRIL) planned hive-off of Big Bazaar is on track and is likely to be consummated by February 2010, according to management. Pantaloon’s management indicates that hive-off of Big Bazaar and Food Bazaar is on track. The hive-off will pave the way for fund-raising at the Big Bazaar level and induction of a foreign food retailer. The latter, which management has hinted at in many forums, is likely to provide the next leg-up to Big Bazaar’s growth trajectory. Big Bazaar and Food Bazaar account for 70% of PRIL’s (standalone) revenues and 67% of its total retail space.
Complete Restructuring Coverage of Pantaloon Retail India Ltd is available here.
This allows the Big Bazaar format to chart its own growth, as funding is done at BB level and as funding constraints are removed; and 3) allow the induction of a strategic investor into Big Bazaar, which can spur further growth in the business in the form of franchising, cash-and-carry or licensing. Current regulations do not allow FDI in multi-brand retailing