Reliance Retail Ventures buys Metro Cash and Carry India for INR 2,850 Cr.
The definitive agreements to purchase a 100% equity investment in METRO Cash & Carry India Pvt. Ltd. (METRO India) have been signed by Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries Ltd., for a total cash estimate of Rs. 2,850 crore, subject to closing adjustments.
As the first business to establish a cash-and-carry business format in India, METRO India began operations there in 2003. With just under 3,500 staff members, it currently has 31 large format stores in 21 locations. Through its retail network and e-B2B app, the multi-channel B2B cash and carry wholesaler can reach more than 3 million B2B customers in India, of whom 1 million are frequent buyers.
For “kiranas,” as well as other small enterprises and merchants, METRO India has established itself as a reliable partner. Its highest sales performance since entering the Indian market, METRO India produced sales of Rs 7,700 crore (926 million euros) in the fiscal year 2021/22 (FY ending September 2022).
With this acquisition, Reliance Retail gains access to a large network of METRO India stores in strategic locations throughout important cities, a sizable base of registered kiranas and other institutional customers, a solid supplier network, and some of the best practises from around the world that METRO has implemented in India.
Utilizing synergies and efficiencies across supply chain networks, technological platforms, and sourcing capabilities, the acquisition will further expand Reliance Retail’s physical store base and capacity to better serve customers and small businesses. All participants in the retail ecosystem will benefit more from the symbiotic relationship’s increased value.
Director of Reliance Retail Ventures Limited Isha Ambani said the following about the investment: “The purchase of METRO India is consistent with our new commercial strategy, which entails creating a special framework of shared prosperity through active partnership with small businesses and retailers. In the Indian B2B sector, METRO India is a leader and a major participant. It has developed a powerful multi-channel platform that offers a superior customer experience.
We think that METRO India’s robust assets and our in-depth knowledge of the Indian merchant and kirana ecosystem will assist the company provide small companies in India with a unique value proposition.” METRO AG CEO Steffen Greubel stated, “We are offering METRO India as a great opportunity to buy a profitable and expanding wholesale company in a booming industry. We are certain that Reliance is a good partner for us and that together, they and METRO India can successfully navigate this market climate into the future.
Due to this, METRO will be able to concentrate on boosting growth in the remaining nation portfolio, which will benefit both our customers and workers, for whom we are incredibly grateful for their dedication and performance.” With the purchase of METRO India, Reliance Retail will be able to expand its reach even further throughout the nation, providing services to all segments of Indian society, including households, kiranas and merchants, HoReCas, small and medium-sized businesses, and institutions.
Reliance Retail will also become the partner of choice by creating win-win situations for local businesses, brand owners, and international suppliers. It is anticipated that the transaction will close by March 2023, subject to a few regulatory and customary closing conditions.
- Upcoming List of Top Indian Web Series of 2021
- Top 10 richest player of the world 2021
- Top 10 highest-paid Indian Athletes 2021
- Top 10 highest paid CEO in the World
- Top 10 richest person of India
- Top 10 Highest Paid CEOs of India
- List Of Most Followed Facebook Pages in 2021
- The Success Story of Jeff Bezos
- Success Story Of Elon Musk
- Top 10 Business Magazine In India
- Top 10 Business Newspaper In India
- Top 10 richest billionaires in the world 2021
- Upcoming English Web Series in 2021
- Top 10 Tourist Places in India, places to visit after lockdown
Leave a Reply