Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries Ltd (RIL), inked formal agreements on Thursday to acquire a 100% ownership investment in METRO Cash & Carry India Pvt Ltd. (METRO India) for Rs 2,850 crore in cash.
“The acquisition of METRO India aligns with our new commerce strategy of building a unique model of shared prosperity through active collaboration with small merchants and enterprises. 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,” said Isha Ambani, Director, Reliance Retail Ventures Limited in a statement.
RIL’s retail arm will gain access to a large network of METRO India stores in prime locations across key cities, a large base of registered kiranas and other institutional customers, a strong supplier network, and some of the global best practices implemented by METRO in India as a result of the acquisition, the company said in an exchange filing.
By utilizing synergies and economies across the supply chain networks, technological platforms, and sourcing capabilities, the purchase will further expand Reliance Retail’s physical store base and capacity to better serve customers and small merchants. According to the company, the symbiotic connection would increase value for all stakeholders in the retail ecosystem.
Through its retail network and eB2B app, the multi-channel B2B cash & carry wholesaler has access to over 3 million B2B clients in India, 1 million of whom are frequent buyers. METRO India has earned the trust of kiranas, as well as other small enterprises and merchants.
“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,” said Steffen Greubel, CEO of METRO AG in a statement.
METRO India produced sales of Rs 7700 crore (€ 926 million) in fiscal year 2021-22 (FY ending September 2022), its greatest sales performance since entering the Indian market.
