Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries Ltd, has signed definitive agreements to acquire 100 per cent equity stake in METRO Cash & Carry India Pvt. Ltd. (METRO India) for a total cash estimation of Rs 2,850 crore, subject to closing adjustments.
METRO India started operations in India in 2003 as the first company to introduce cash-and-carry business format in the country and currently operates 31 large format stores across 21 cities with nearly 3,500 employees.
The multi-channel B2B cash and carry wholesaler has a reach to more than 3 million B2B customers in India, of which 1 million are frequently buying customers, through its store network and e-B2B app.
METRO India has established itself as a trusted partner for 'kiranas' and other small businesses and merchants. In the financial year 2021/22 (FY ended September 2022), METRO India generated a sales of Rs 7,700 crore (926 million Euros), its best sales performance since its market entry into India.
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.
The 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, said the company.
Speaking about this investment, Isha Ambani, Director, Reliance Retail Ventures Limited, said, "METRO India is a pioneer and key player in the Indian B2B market and has built a solid multi-channel platform delivering strong customer experience."
With the acquisition of METRO India, Reliance Retail will continue to build reach across the country to serve the entire spectrum of Indian society i.e. households, kiranas and merchants, HoReCa and small and medium enterprises and institutions, and be the partner of choice, and enable win-win opportunities for producers, brand companies and global suppliers.
The transaction is subject to certain regulatory and other customary closing conditions and is expected to complete by March 2023.
