May 25, 2024
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Mukesh Ambani’s Reliance To Acquire Metro AG’s India Business For ₹ 2,850 Crore

In order to further solidify its hegemonic position in India’s enormous retail market, Mukesh Ambani’s conglomerate Reliance Industries Ltd. will pay 2,850 crore for the wholesale operations in India of German company Metro AG.

“Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries Ltd, today signed definitive agreements to acquire a 100 per cent equity stake in Metro Cash & Carry India for a total cash consideration of ₹ 2,850 crore, subject to closing adjustments,” said a joint statement.

Reliance Retail will have access to a network of Metro India stores in prime locations throughout important cities, as well as a sizable base of registered kiranas and other institutional clients, as well as a robust supplier network, through this transaction.

“The acquisition will further 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,” it said.

The acquisition is scheduled to close by March 2023 but is subject to a number of regulatory and customary closing conditions.

Isha Ambani, director of RRVL, offered the following statement in response to the news: “The acquisition of Metro India matches with our new commerce strategy of developing a distinctive model of shared prosperity through active partnership with small businesses.” A significant player in the Indian B2B industry, Metro India has developed a robust multi-channel platform that offers a positive client experience.

60% of the Indian retail business, worth 60 lakh crores, is made up of the food and grocery sector. It is anticipated that organised retail will account for 12% of the whole retail market.

With roughly three times as many stores as its closest rival, “More,” Reliance already holds a 20% market share in the organised food and grocery industry.

With the launch of the “Independence” brand for basics, processed foods, beverages, and other daily necessities this month, it made its first entrance into the FMCG sector, competing with companies like ITC, Tata Consumer Products Ltd., Patanjali, and Adani Wilmar.

Picture Courtesy: Google/images are subject to copyright

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