India-based Future Group has announced demerger of its home retail and e-commerce home retail businesses into a single entity. The newly formed entity would be called Praxis Home Retail. It will on core format of small and big retail stores.
“This is demerger of the home retail business. We are separating the speciality retail and would concentrate on the small-store and big-store retail,” Future Group CEO Kishore Biyani was quoted as saying by a leading news agency.
The demerger plan has received approval from Future Retail Ltd. (FRL) Board. In a stock exchange filing, Future Retail said the home retail business operated through its HomeTown stores, and the e-commerce home retail business operated by Blue eServices (which owns Fabfurnish.com) will be demerged into Praxis Home Retail.
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“The Group has demerged and allotted its shareholders share of home retail which is speciality retail. It has a different set of investors, customers and a different kind of thought also. Now, the company would take its own course for growth,” the CEO added.
HomeTown format was initially established in 2007 and was vested with the company from Future Enterprise Ltd as part of the demerged business from October 31, 2015.