Reliance Industries: According to industry insiders, Reliance Industries is planning to buy the Cash & Carry division of German retailer METRO AG in India for 500 million euros (Rs. 4,060 crore).
According to them, the acquisition comprises 31 wholesale distribution centres, land banks, and additional METRO Cash & Carry assets.
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Reliance Retail, the biggest retailer in the nation, would be able to increase its market share in the B2B sector thanks to this.
The billionaire Mukesh Ambani-led Reliance Industries and METRO had been in talks for a few months before the German parent company last week accepted the offer from Reliance Retail, they continued.
However, METRO and Reliance Industries declined to comment on the development.
“Our company evaluates various opportunities on an ongoing basis,” a Reliance official said.
“We do not comment on market rumour or speculations,” the spokeswoman for METRO AG stated.
Retailers and kirana stores, hotels, restaurants, and caterers (HoReCa), corporates, SMEs, businesses, and institutions make up METRO Cash & Carry’s clientele.
B2B is regarded as a low-margin industry, and in 2014, major corporations like Carrefour left the nation.
The largest e-commerce company Flipkart Group bought a 100% share in Walmart India Pvt Ltd, which runs the Best Price cash-and-carry operation, in July 2020.
Other merchants, such as Siam Makro, which runs Lots Wholesale cash-and-carry trade business under the brand name LOTS Wholesale Solutions, were also competing to purchase METRO Cash & Carry.
Siam Makro, a member of the Thai Charoen Pokphand Group, declared last month that it was withdrawing from the bidding process for METRO Cash & Carry India.
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In 2003, METRO AG, a company with operations in 34 nations, joined the Indian market.
Six locations are run by the company in Bengaluru, four in Hyderabad, two each in Mumbai and Delhi, and one in each of the following cities: Kolkata, Jaipur, Jalandhar, Zirakpur, Amritsar, Ahmedabad, Surat, Indore, Lucknow, Meerut, Nasik, Ghaziabad, Tumakuru, Vijayawada, Visakhapatnam, Guntur, and Hubballi.
Reliance Retail Ventures Ltd (RRVL), a division of Reliance Industries, serves as the holding company for all of the group’s retail businesses.
For the fiscal year that concluded on March 31, 2022, RRVL reported a combined turnover of almost 2 lakh crore.
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