Aditya Birla Fashion & Retail said it was not directly linked to the reported merger between Aditya Birla Group’s More supermarkets and Future Retail’s Big Bazaar.
The company was responding to a question by the stock exchanges after its stock rose in response to a report in the Economic Times that the two retail chains are in talks to merge their supermarket operations.
“We would like to clarify that the company referred to in the said news, Aditya Birla Retail Ltd (which carries on the food and grocery business) is a distinct and different legal entity from our company,” Aditya Birla Fashion and Retail Ltd said.
“The increase in prices of the scrip of the company today.. cannot be said to be attributable to the said news,” it added.
The Economic Times reported that the owners of the two supermarket chains are in talks to merge their chains and offer logistical and fulfilment services to e-commerce companies that may be interested in tying up with a brick-and-mortar partner to fulfil their grocery and perishable orders.
‘More’ branded supermarkets are estimated to be the fourth largest grocery chain in India after Big Bazaar, Reliance Retail and D’Mart.