Subsidiary of Reliance Retail Ventures Limited (RRVL) Reliance Industries Ltd. has entered into an agreement to acquire a 100% stake in Metro Cash and Carry India Pvt Ltd (Metro India) for a cash consideration of Rs.285 billion.
METRO India, a wholly owned subsidiary of METRO AG, operates cash and carry stores in India, primarily under the ‘METRO’ brand, with over 19 years of experience and history of innovation in the B2B segment. The addition of uniquely positioned multi-category megastores to his Reliance Retail store footprint across India further strengthens our new commerce business.
METRO India started in 2003 as the first company to introduce cash and carry business format in India. He operates 31 mega-stores in 21 cities, employs about 3.5 million people, and reaches over 3 million of his B2B customers in India, 1 million of whom are in the store network and his frequently purchase customers through eB2B apps. A trusted partner for Kirana, other small businesses and merchants. Generated revenue of Rs 7700 cr (EUR 926 million) in FY 2021/22 (fiscal year ended September 2022), the highest sales performance since market entry in India
Reliance Retail has access to and implements an extensive network in prime locations in major cities, a large base of registered Kirana and other corporate customers, a strong supplier network and global best practices implemented by METRO in India. Further enhance our store footprint, better serve our consumers, smaller merchants, synergies and efficiencies across our supply chain network, technology platform and sourcing capabilities to reach all stakeholders in the retail ecosystem brings greater value.
RRVL Director Isha Ambani said: METRO India is a pioneer and key player in his B2B market in India, building a solid multi-channel platform to deliver a strong customer experience. Combining sound assets with a deep understanding of the Indian merchant/Kirana ecosystem, we are able to offer a differentiated value proposition to Indian SMEs. ”
METRO AG CEO Steffen Greubel said: At Reliance, in this market environment he has found the right partner with the drive and ability to lead METRO India into the future. This is a huge thank you to our customers and employees for their loyalty and performance. METRO will be able to focus on accelerating the growth of its remaining country portfolio. ”
With the acquisition of METRO India, Reliance Retail will continue to build its reach to serve the entire Indian society, including homes, kirana and merchants, HoReCa and SMEs and institutions, and become the partner of choice to grow with producers, brands, global supplier.
The acquisition is expected to close by March 2023, subject to customary regulatory closing conditions.