Hyderabad– Future Retail Limited on Monday announced that its board of directors has approved acquisition of the retail and allied businesses of Heritage Foods Limited, a company owned by the family of Andhra Pradesh Chief Minister N. Chandrababu Naidu.

Naidu’s son N.A Lokesh and Future Group Chairman and Managing Director Kishore Biyani made the announcement at a news conference here.

The retail business of Heritage Foods includes the popular Heritage store chain of 124 stores in the southern cities of Hyderabad, Bengaluru and Chennai.

Heritage Foods, headed by Naidu’s wife N.A Bhuwaneswari, has a presence in dairy, retail, agricultural, renewable energy and veterinary care.

The retail and allied businesses of Heritage Foods posted revenues of Rs 629.70 crore during 2015-16.

“As part of the scheme of arrangement for the acquisition, Heritage Foods Limited will spin off its retail, bakery, agri-sourcing and veterinary care business in a fully owned subsidiary. Subsequently, all these businesses, except veterinary care, will then be merged with Future Retail Limited. The scheme shall be subject to approvals from relevant regulatory authorities and shareholders of the companies,” a joint statement said.

On closure of the transaction, Heritage Foods will own 3.65 per cent shareholding in Future Retail Limited through fresh issuance of shares by the company.

Lokesh said the valuation would be Rs 295 crore.

Terming the agreement as a meeting of minds, he said this would help Heritage to consolidate and focus on its dairy business.

Heritage Dairy has a market presence across 10 states with 1,13,500 outlets.

Heritage started retail operations in 2006. The stores are operated under the brand “Heritage Fresh”.