Reliance merger gone bad, Britain's Chicken King to axe 1800 jobs
Reliance industries chief Mukesh Ambani's diktat banning all non-vegetarian products from his Reliance Retail chain has sent ripples in Britain.
The move may be behind British-Indian businessman Ranjit Singh Boparan's announcement to axe around 1,800 jobs in the UK as part of a major restructuring of his food business empire. Boparan is known as the Chicken King in UK and runs 2 Sisters Food Group (2SFG), the third largest food company in UK.
In October, Boparan announced it had swung from a full-year pre-tax profit of £42.5 million to a £33.5 million loss despite a 23% jump in sales to £2.9 billion.
The Birmingham-based tycoon is planning to shut two sites and cut jobs to rein in costs. Industry sources say this could have been a result of the company's merger with Reliance a few months ago.
Reliance had planned to run an exclusive chicken restaurant chain in India in partnership with a UK-based company. Thee chain was to be called "Chicken came First" and was expected to directly compete with KFC (Kentucky Fried Chicken).
RIL went ahead and picked up a 45% equity stake in Two Sisters Foods India (TSFI). The balance 55% was held by 2SFG founded by Boparan. TSFI was to supply chilled and frozen foods to Reliance.
But Ambani's plans to go veggie shutting down 100-odd Reliance Delight stores that sell a range of fresh and frozen meats and seafood might have hurt Boparan
Ambani apparently took this decision after demands were made from his shareholders who claimed that Reliance's 'non-vegetarian' business hurt their religious sentiments.
It is now looking at the closure of a site in Corby, Northamptonshire and a cake factory in Newport, South Wales. A further 230 jobs are expected to go in Coupar Angus near Dundee.
The move may be behind British-Indian businessman Ranjit Singh Boparan's announcement to axe around 1,800 jobs in the UK as part of a major restructuring of his food business empire. Boparan is known as the Chicken King in UK and runs 2 Sisters Food Group (2SFG), the third largest food company in UK.
In October, Boparan announced it had swung from a full-year pre-tax profit of £42.5 million to a £33.5 million loss despite a 23% jump in sales to £2.9 billion.
Reliance had planned to run an exclusive chicken restaurant chain in India in partnership with a UK-based company. Thee chain was to be called "Chicken came First" and was expected to directly compete with KFC (Kentucky Fried Chicken).
RIL went ahead and picked up a 45% equity stake in Two Sisters Foods India (TSFI). The balance 55% was held by 2SFG founded by Boparan. TSFI was to supply chilled and frozen foods to Reliance.
But Ambani's plans to go veggie shutting down 100-odd Reliance Delight stores that sell a range of fresh and frozen meats and seafood might have hurt Boparan
Ambani apparently took this decision after demands were made from his shareholders who claimed that Reliance's 'non-vegetarian' business hurt their religious sentiments.
It is now looking at the closure of a site in Corby, Northamptonshire and a cake factory in Newport, South Wales. A further 230 jobs are expected to go in Coupar Angus near Dundee.
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