Reliance Retail Ventures Limited (‘RRVL’), a subsidiary of Reliance Industries Limited, signed agreements to acquire 100% equity stake in Metro Cash and Carry India Private Limited (‘Metro India’). The transaction value of Rs 2,850 crore is subject to closure adjustments. The company is operating in India since 2003. With approximately 3,500 employees, the company operates 31 large format stores in 21 cities.
Metro-India was the first company to introduce the cash-and-carry business format in the country. The company is operating in India since 2003. With approximately 3,500 employees, the company operates 31 large format stores in 21 cities. The multi-channel B2B cash & carry wholesaler business in India has a reach of close to 3 million customers, of which 1 million customers actively shop through its store network and eB2B apps.
In the financial year 2021-22 (financial year ending September 2022), Metro India posted sales of ₹7,700 crore (€926 million), its best ever performance in India. Through this acquisition, Reliance Retail will get a wide network of Metro India stores located at prime locations in major cities, thereby strengthening the market presence of Reliance Retail. Along with this, a large base of registered grocery and other institutional customers and a very strong supplier network will also be available.
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Talking about the investment, Isha Ambani, Director, Reliance Retail Ventures Ltd. said, “The acquisition of Metro India is in line with our new commerce strategy to create a unique model of shared prosperity through active collaboration with small merchants and enterprises.
Metro India is a leading and dominant player in the Indian B2B market and has built a solid multi-channel platform. We believe that our understanding of the Indian merchant and grocery eco system and the new Metro India stores will be a boon for small businesses.
Metro AG CEO Dr. Stefan Grebel said that we are confident that we have found a suitable partner in Reliance. Reliance is well positioned to successfully lead Metro India into the future. This will benefit both our customers and our employees. The transaction is subject to certain regulatory and other customary closing conditions and is expected to be completed by March 2023.
