Categories: Business

Reliance Acquires Metro AG’s India Business for Rs 2,850 Crore

Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries Ltd signed definitive agreements to acquire 100 percent equity stake in Metro Cash and Carry India Pvt Ltd, which operates under the ‘Metro India’ brand, for a cash consideration of Rs 2,850 crore.

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Significance of This Acquisition:

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 best practices implemented by METRO in India. The acquisition will further strengthen Reliance Retail’s physical store footprint and ability to better serve consumers and small merchants by leveraging synergies and efficiencies across supply chain networks, technology platforms and sourcing capabilities.

About Metro India:

Metro India, a wholly owned subsidiary of Mero AG, started operations in India in 2003 as the first company to introduce cash-and-carry business format in the country and now runs 31 large format stores across 21 cities with about 3,500 employees. The multi-channel B2B cash-and-carry wholesaler has a reach to over 3 million B2B customers in India and 1 million of them are frequent buyers through its store network and eB2B app.

Metro India serves kiranas and other small businesses and merchants. In the financial year 2021-22 (FY ended September 2022), the company generated sales of Rs 7,700 crore, its best sales performance since its market entry into India.

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Piyush Shukla

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