Reliance Retail Ventures Limited acquires METRO Cash & Carry India
The acquisition is expected to complete by March 2023
Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries Ltd, has signed an agreement to acquire 100 percent equity stake in Metro Cash and Carry India Pvt Ltd (Metro India) for a total cash consideration of Rs 2,850 crore, subject to closing adjustments.
METRO India, a wholly owned subsidiary of METRO AG, operates cash & carry stores primarily under ‘METRO’ brand in India, with a history of 19+ years of experience & innovation in the B2B segment. It will add uniquely positioned multi-category large format stores to Reliance Retail’s store footprint across India, further strengthening our new commerce business
METRO India started in India in 2003 as the first company to introduce a cash-&-carry business format; operates 31 large format stores across 21 cities with ~3.5k employees and has a reach of 3 mn+ B2B customers in India, of which 1 mn are frequently buying customers, through its store network & eB2B app. A trusted partner for kiranas, other small businesses, and merchants. In FY 2021/22 (FY ended Sept 2022), generated sales of Rs 7700 cr (€ 926 million), its best sales performance since its market entry into India
Reliance Retail gets access to a wide network in prime locations across key cities, a large base of registered kiranas & other institutional customers, a strong supplier network & global best practices implemented by METRO in India, further strengthening physical store footprint, better serving consumers & small merchants, synergies & efficiencies across supply chain networks, tech platforms & sourcing capabilities, create greater value for all stakeholders in the retail ecosystem
Isha Ambani, Director, RRVL said, “The acquisition aligns with our new commerce strategy of building a unique model of shared prosperity through active collaboration with small merchants & enterprises. METRO India is a pioneer & key player in the Indian B2B market & has built a solid multi-channel platform delivering strong customer experience; healthy assets combined with our deep understanding of the Indian merchant/kirana ecosystem will help offer a differentiated value proposition to small businesses in India”
Steffen Greubel, CEO of METRO AG, said, “With METRO India, we are selling a growing & profitable wholesale business in a v dynamic market at the right time. In Reliance we have found a suitable partner who is willing & able to successfully lead METRO India into the future in this market environment. This will benefit our customers & our employees, for whose loyalty & performance we are v grateful; will enable METRO to focus on accelerating growth in the remaining country portfolio”
With the acquisition of METRO India, Reliance Retail will continue to build reach to serve the entire spectrum of Indian society i.e. households, kiranas & merchants, HoReCa & small & medium enterprises & institutions, be the partner of choice, enable win-win opportunities for producers, brand companies & global suppliers.
Subject to regulatory, customary closing conditions the acquisition is expected to complete by March 2023.
