Vivid News 24: Reliance Retail Ventures Limited (RRVL), the retail division of Reliance Industries (RIL), inked official contracts on Thursday to buy Metro Cash and Carry India Pvt Ltd, which operates under the “Metro India” brand, for a cash consideration of Rs 2,850 crore.
Reliance Retail, owned by Mukesh Ambani, said in a statement: “Through this acquisition, Reliance Retail gets access to a wide network of METRO India stores located in prime locations across key cities, a large base of registered kiranas and other institutional customers, strong supplier network, and some of the global best practices implemented by METRO in India.
Currently, Metro India provides service to kiranas as well as other micro businesses and retailers. The company’s revenues for the fiscal year 2021–2022 totaled Rs 7,700 crore, marking its greatest sales performance since entering the Indian market. The business began operating in India in 2003 and was the first to adopt the cash-and-carry business model there.
It now employs over 3,500 people and has 31 big-format stores across 21 cities. According to a Reliance regulatory filing, the multi-channel B2B cash-and-carry wholesaler in India has a reach of over 3 million B2B clients, 1 million of whom are regular consumers through its store network and eB2B app.
Reliance Retail stated in a regulatory filing that it anticipates the transaction will benefit its physical store count and “capacity to better serve customers and small merchants by utilizing synergies and efficiency across supply chain networks, technological platforms, and sourcing capabilities.” The transaction is scheduled to close by March 2023, subject to a few regulatory requirements and other usual closing conditions.
Isha Ambani, Director of Reliance Retail Ventures Limited, commented on the transaction by saying: “The acquisition of Metro India matches with our new commerce strategy of developing a distinctive model of shared prosperity via an active partnership with small businesses.”
With the aid of this acquisition, Reliance Retail will further extend its reach throughout the nation to service the entire spectrum of Indian society, from homes and kiranas to merchants, and from hotels, restaurants, and catering to small and medium companies and institutions, the firm said.
Days after launching its consumer packaged goods brand, Independence, in Gujarat, Reliance Consumer Products, the FMCG division and wholly owned subsidiary of Reliance Retail Ventures, made the deal. Reliance Industries will enter the FMCG market this year, Isha Ambani stated at the company’s 45th annual general meeting in August.
Independence will provide a large selection of goods in several categories, including basics, processed foods, and other necessities for daily life. To achieve excellence in execution for its FMCG business as it gets ready for a nationwide rollout for the brand, it aims to build Gujarat as a “go-to-market” state, the company said.