According to a joint statement of RRVL, a subsidiary of Reliance Industries Ltd, Reliance Retail Ventures Limited (RRVL), has finalized agreements to purchase a 100% equity stake in Metro Cash and Carry India Pvt Ltd, which trades under the “Metro India” brand, for a cash payment of Rs 2,850 crore.
As per the reports, the reliance subsidiary, “signed definitive agreements to acquire a 100% equity stake in Metro Cash & Carry India for a total cash consideration of Rs 2,850 crore, subject to closing adjustments.”
As the country’s first company to introduce the cash-and-carry business model, Metro India, a fully-owned subsidiary of Mero AG, began operations in India in 2003.
It should be noted that with about 3,500 employees, it currently operates 31 large format stores across 21 cities.
Through its store network and eB2B app, the multi-channel B2B cash-and-carry wholesaler reaches over 3 million B2B customers in India, 1 million of whom are regular buyers.
Kiranas and other small businesses and merchants are served by Metro India.
As per their data, the Metro generated sales of Rs 7,700 crore in the fiscal year 2021–22 (FY ended September 2022), which was its best sales performance since entering the Indian market.
Reliance Retail now gains access to a large network of retailers, institutional and retail buyers, and a reliable supply chain through this acquisition.
Isha Ambani, Director of Reliance Retail Ventures Limited, stated that 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 major player in the Indian B2B market.
It has built a strong multi-channel platform that provides strong customer experience.”, she added.
With the help of this acquisition, Reliance Retail is expected to expand its reach throughout the nation in order to serve the entire spectrum of society, from households and kiranas to merchants, hotels, and restaurants, and catering to small and medium enterprises and institutions.
According to Dr. Steffen Greubel, CEO of Metro AG, “We are confident 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.”
On the one hand, this will help Metro focus on accelerating growth in the remaining country portfolio, which we are very appreciative of, and on the other hand, it will benefit both our customers and employees, for whose loyalty and performance we are very grateful, he said.
The transaction is expected to close by March 2023, subject to a few regulatory requirements and other customary closing conditions.