The deal is part of the scheme in which Future Group is merging certain group companies into Future Enterprises, and subject to regulatory and shareholder approvals, Reliance Industries said in a regulatory filing. The transaction had reportedly been in the works for months.
Reliance Industries said the acquisition of Future Group's retail, wholesale and supply chain businesses makes a strong strategic fit into its retail business.
While the logistics and warehousing units of Future Group will be transfered to Reliance Retail Ventures, the retail and wholesale businesses will be part of its wholly-owned arm, Reliance Retail and Fashion Lifestyle.
"With this transaction, we are pleased to provide a home to the renowned formats and brands of Future Group as well as preserve its business ecosystem, which have played an important role in the evolution of modern retail in India," said Isha Ambani, director, Reliance Retail Ventures.
Billionaire Kishore Biyani-owned Future Group is home to supermarket chain Big Bazaar, upmarket food stores Foodhall, and bargain clothing chain Brand Factory.
Reliance Industries said Future Group's portfolio composition in apparel, general merchandise and fast-moving consumer goods brands will allow for a wider offering to its customers.
The deal will help Reliance Retail accelerate and provide "support to millions of small merchants in increasing their competitiveness and enhance their income during these challenging times, the company added.
"We hope to continue the growth momentum of the retail industry with our unique model of active collaboration with small merchants and kiranas as well as large consumer brands," she added.
Reliance Retail Ventures is part of conglomerate Reliance Industries, which became net debt-free in June, months ahead of its goal of March 2021.
Reliance Industries has been diversifying its business and ramping up a retail presence. It launched an online grocery service JioMart in May, a move rivalling Amazon and Walmart's Flipkart in India, a key growth market for e-commerce.
It has raised more than Rs. 2 lakh crore this year through sale of stakes in its telecom arm, Reliance Jio, to investors including Google and Facebook, as well as a rights issue worth over Rs. 53,000 crore.
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