METRO sells India Cash & Carry to Reliance Retail for Rs 2,850cr
The German retailer, METRO AG, has announced the full completion of the sale of its Indian cash and Carry business to Reliance Retail Ventures Ltd (RRVL), which operates the retail empire of Reliance Industries Ltd.
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As part of the deal, RRVL has acquired all 31 wholesale stores that were operated by METRO Cash & Carry India and the entire real estate portfolio, which includes six store-occupied properties.
METRO sells India Cash & Carry to Reliance Retail for Rs 2,850cr: Key Points
- “METRO India will complement Reliance Retail’s retail network in the future”, said a statement from METRO AG.
- During an agreed transition period, all METRO India stores will continue to operate under the METRO brand.
- However, there will be no noticeable changes for METRO employees and customers for the time being.
- The deal, which was announced in December 2022, is reportedly worth ₹2,850 crore and will help Reliance Retail strengthen its dominant position in India’s massive retail sector, which is one of the fastest-growing markets globally.
METRO is committed to maintaining its strong growth momentum and taking decisive strides towards achieving its medium- and long-term goals.
- According to the statement, the reduction of net debt in Q1 due to the reclassification of the Indian business as an “Asset held for sale” (€0.15 billion) and the receipt of €0.3 billion in cash proceeds will further decrease METRO’s net debt (total effect on net debt over €0.4 billion) and support the implementation of METRO’s sCore strategy.
- Reliance Retail’s revenue from operations for the financial year ended March 31, 2023, was ₹2.30 lakh crore.
- The holding company for Reliance Industries’ retail operations, RRVL, is looking to expand its distribution network across regions and broaden its product offerings in the Consumer Brands sector.
METRO is a prominent international food wholesaler with operations in over 30 countries. In the 2021/22 fiscal year, the company boasted sales of 29.8 billion Euros.
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- METRO AG CEO: Steffen Greubel