Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries Ltd (RIL), on Thursday signed definitive agreements to gather a hundred% fairness stake in METRO Cash & Carry India Pvt Ltd. (METRO India) for a total cash attention of Rs 2,850 crore.
“The acquisition of METRO India aligns with our new commerce approach of building a completely unique model of shared prosperity via lively collaboration with small merchants and corporations. METRO India is a pioneer and key participant inside the Indian B2B marketplace and has constructed a solid multi-channel platform handing over robust customer revel in,” said Isha Ambani, Director, Reliance Retail Ventures Limited in a declaration.
“We accept as true with that METRO India’s healthy assets mixed with our deep knowledge of Indian merchant / Kirana ecosystem will assist provide a differentiated cost proposition to small agencies in India.”
Through the acquisition, RIL’s retail arm gets get right of entry to to a wide community of METRO India shops placed in prime locations throughout key cities, a big base of registered kiranas and other institutional clients, strong provider network and a number of the worldwide first-rate practices applied by way of METRO in India, the business enterprise stated in an trade submitting.
The acquisition will further improve Reliance Retail’s bodily store footprint and potential to better serve clients and small merchants via leveraging synergies and efficiencies across deliver chain networks, generation systems and sourcing capabilities. The symbiotic dating will create extra value for all stake holders within the retail ecosystem, it added.
METRO AG’s India enterprise
METRO India started out operations in India in 2003 as the first organization to introduce coins-and-deliver business format in the u . S . And presently operates 31 large format stores across 21 cities with about 3,500 employees.
The multi-channel B2B cash & carry wholesaler has attain to over 3 million B2B customers in India, of which 1 million are often shopping for clients, through its keep network and eB2B app. METRO India has mounted itself as a depended on accomplice for kiranas and different small agencies and merchants.
“With METRO India, we’re selling a growing and worthwhile wholesale enterprise in a totally dynamic market on the right time. We are satisfied that during Reliance we have determined a suitable companion who’s inclined and able to successfully lead METRO India into the future in this market environment,” stated Steffen Greubel, CEO of METRO AG in a assertion.
In the financial 12 months 2021-22 (FY ended September 2022), METRO India generated sales of Rs 7700 crore (€ 926 million), its satisfactory sales overall performance because its marketplace access into India.