Amazon Accused Future Group For Violating contract
Amazon has recently said that its Indian partner Future Group violated a contract by entering into a $3.4 billion sale agreement with billionaire Mukesh Ambani’s Reliance Industries.
Aa spokeswoman from Amazon said in a email: “We have initiated steps to enforce our contractual rights. As the matter is sub-judice, we can’t provide details”
Amazon agreed to purchase 49 per cent of one of Future’s unlisted firms last year, with the right to buy into flagship Future Retail after a period of between three and 10 years. But about two months ago, rival Reliance announced it would buy the retail, wholesale, logistics and warehousing units of the indebted Future Group, almost doubling its footprint as India’s largest retailer.
With the dispute, Amazon is drawing the battle lines with Reliance in the race for India’s estimated $1 trillion retail market, where online shopping is gaining ground. For Amazon, the Indian partner was crucial to strengthening its foothold after becoming the authorized online sales channel for Future Retail’s stores that sell everything from groceries to cosmetics and apparel.
The deal between Reliance and Future, announced late August, is awaiting regulatory approvals.