JioMart lays off: Reliance Industry’s JioMart has asked 1,000 employees to resign. This news report was carried out recently in the Economic Times.JioMart is in the wholesale business and supplies its goods to the neighbourhood kirana stores. It has 15,000 employees and 150 fulfilment centres.
Last year, JioMart acquired Metro Cash and Carry for a total cash consideration of INR 2,850 crores. Both Jio and Metro are in similar business. Furthermore, there are several overlapping roles in both companies.
Therefore, to cut its losses and improve profit margins, JioMart has asked 1,000 employees to resign. People in the know claim that JioMart will cut its workforce by two-thirds in the coming weeks. However, it’s unclear what will happen to Metro’s employees or the 150 fulfilment centres that JioMart runs. Fulfilment stores supply goods to neighbourhood retail shops.
Acquisition leads to synergy
Reliance’s acquisition of Metro Cash and Carry leads to a synergy of operations in both companies. By acquiring Metro, Reliance Retail Ventures has now access to a large base of smaller kirana stores across the country. These stores are located in Amritsar, Bangalore, Ahmedabad, Delhi, Ghaziabad, Guntur, Hubballi, Indore, Kolkata, and Mumbai. Before this acquisition, Reliance had only access to big-sized kirana shops.
The tie-up with Metro Cash and Carry also helps JioMart to service the former’s hotels, restaurants and caterers clients. This way, JioMart would be able to distribute Campa Cola to its assorted customers seamlessly. Reliance had acquired Brand Campa in an INR 22 crores deal from Pure Drinks Limited.
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Much more than just textiles
Today, Reliance Industries Limited is present in textiles, oil-refining, telecommunications and retail businesses. It is one of the most profitable business groups in India and is known for quick and effective execution of its business plans.
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