Reliance Retail Acquires Metro Cash & Carry India For ₹2,850 Crore
Reliance Retail Ventures is all set to acquire 100% equity in popular B2B wholesaler Metro India for ₹2,850 crore, which has 31 large format stores & 30 lakh customers.
Reliance Retail Ventures, the retail arm of Reliance Industries (RRVL), has reached an agreement to purchase Metro Cash & Carry India for Rs2,850 crore.
Metro India, a wholly owned subsidiary of German company Metro AG, has 31 large format shops in 21 cities across India and operates under the brand name “Metro”. It serves the B2B segment, and has over 3,000,000 customers.
Joint statement stated that “The acquisition will further enhance Reliance Retail’s physical footprint and ability to better service consumers and small merchants through leveraging synergies across supply chain networks and technology platforms, as well as sourcing capabilities.”
Reliance Retail will acquire 100% of Metro India’s equity. According to a joint statement, the two companies stated that the deal would close by March 2023 subject to regulatory approvals.
According to Reliance Retail’s Q2 FY23 filings, the company has 16,617 stores in the country. The company reported a 36% increase in net profit year-on-year to Rs2,305 crore, while revenue was Rs64,396 crore.
Metro India, which has 31 stores, reported a revenue of Rs7.700 crore for the fiscal year 2021-22 (ended September 20,222), which is its highest performance since 2003, when it was founded.
Director, RRVL, Isha Ambani said, “We believe that Metro India’s healthy assets together with our deep understanding of the Indian merchant/kirana environment will help offer a differentiated proposition to small businesses.
Reliance Retail will have access to 31 large format retail stores and a multi-channel platform. The company will also have access to 3,000,000 B2B customers, 1 million of whom are frequent buyers.