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Metro India, which is a wholly owned subsidiary of METRO AG, operates cash and carry stores primarily under Metro brand in India. It currently operates 31 large format stores across 21 cities with about 3,500 employees. The multi-channel B2B cash and carry wholesaler has reach to over 3 million B2B customers in India, of which 1 million are frequently buying customers, through its store network and eB2B app.
India’s Reliance Retail Ventures Limited, a subsidiary of Reliance Industries Ltd, has signed definitive agreements to acquire 100 per cent equity stake in Metro India for a total cash consideration of ₹2,850 crore. This move comes in a bit to add uniquely positioned multi-category large format stores to Reliance Retail’s store footprint across India.
Through this acquisition, Reliance Retail gets access to a wide network of Metro India stores located in prime locations across key cities, a large base of registered kiranas and other institutional customers, strong supplier network, and some of the global practices implemented by Metro in India. The acquisition will further strengthen Reliance Retail’s ability to better serve consumers and small merchants by leveraging synergies and efficiencies across supply chain networks, technology platforms, and sourcing capabilities, Reliance Retail said in a press release.
The transaction is subject to certain regulatory and other customary closing conditions and is expected to complete by March 2023.
“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 key player in the Indian B2B market and has built a solid multi-channel platform delivering strong customer experience. We believe that Metro India’s healthy assets combined with our deep understanding of Indian merchant / kirana ecosystem will help offer a differentiated value proposition to small businesses in India,” said Isha Ambani, director, Reliance Retail Ventures Limited.
“With METRO India, we are selling a growing and profitable wholesale business in a very dynamic market at the right time. We are convinced 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. This in one hand will benefit both our customers and our employees, for whose loyalty and performance we are very grateful, and on the other hand will enable METRO to focus on accelerating growth in remaining country portfolio,” Dr Steffen Greubel, CEO of Metro AG.
Fibre2Fashion News Desk (DP)
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