Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries Ltd, on December 22, signed definitive agreements to acquire 100 percent equity stake in Metro Cash and Carry India Pvt Ltd (Metro India) for a cash consideration of Rs 2,850 crore.
Metro India, a wholly owned subsidiary of Metro AG, started operations in India in 2003 as the first company to introduce cash-and-carry business format in the country and now runs 31 large format stores across 21 cities with about 3,500 employees. The multi-channel B2B cash-and-carry wholesaler has a reach to over 3 million B2B customers in India and 1 million of them are frequent buyers through its store network and eB2B app.
Metro India serves kiranas and other small businesses and merchants. In the financial year 2021-22 (FY ended September 2022), the company generated sales of Rs 7,700 crore, its best sales performance since its market entry into India.
Through this acquisition, Reliance Retail gets access to a wide network of outlets and retail and institutional buyers, and a strong supply channel. It will also help Reliance Retail’s physical store footprint and the ability to better serve consumers and small merchants by leveraging synergies and efficiencies across supply chain networks, technology platforms and sourcing capabilities.
Meanwhile, Reliance Retail will continue to widen its reach across the country to serve the entire spectrum of Indian society – from households and kiranas to merchants, and from hotels, restaurants and catering to small and medium enterprises and institutions – with the help of this acquisition.
“With Metro India, we are selling a growing and profitable wholesale business in a very dynamic market at the right time. We are convinced that in Reliance we have found a suitable partner who is willing and able to successfully lead METRO India into the future in this market environment,” Dr Steffen Greubel, CEO of Metro AG, said.
The transaction is subject to certain regulatory and other customary closing conditions and is expected to complete by March 2023.