Reliance Industries is all set to acquire German firm Metro AG’s wholesale operations in India for Rs 2,850 crore as it seeks to strengthen its dominant position in India’s mammoth retail sector.
Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries, signed definitive agreements to acquire 100 per cent equity stake in METRO Cash and Carry India.
Metro India started operations in India in 2003 as the first company to introduce a cash-and-carry business format in the country. The company currently operates 31 large format stores across 21 cities across the country. The wholesaler has a reach of over 3 million B2B customers in India, of which 1 million are frequently buying customers.
METRO India generated sales of Rs 7700 crore in the financial year 2021/22 (FY ended September 2022), its best sales performance since its market entry.
This acquisition will strengthen Reliance Retail’s physical store footprint and ability to better serve consumers and small merchants by leveraging synergies and efficiencies across supply chain networks, technology platforms and sourcing capabilities.
The company aims to develop a unique model of shared prosperity through active collaboration with small merchants and enterprises. METRO India has a solid multi-channel platform that will help deliver Reliance a strong customer experience.
The company believes that METRO India’s healthy assets combined with the former’s deep understanding of the Indian kirana ecosystem will help offer a differentiated value proposition to small businesses in India.
Reliance is India’s largest brick-and-mortar retailer with over 16,600 stores, Metro is a leading international specialist in wholesale and food retail in 34 countries. A strong wholesale unit with this acquisition would further deepen Reliance Industries’ operations in India.
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