Subject to closing adjustments, Reliance Retail Ventures Limited (RRVL), a Reliance Industries Ltd. subsidiary, entered into binding agreements to purchase a 100% equity investment in METRO Cash & Carry India Pvt Ltd. (METRO India) for a total cash consideration of Rs. 2,850 crores.
The first company to introduce the cash-and-carry business model to India was METRO India, which began operations there in 2003. At the moment, METRO India employs over 3,500 people and has 31 large format stores across 21 cities.
Through its shop network and eB2B app, the multi-channel B2B cash & carry wholesaler has reached over 3 million B2B clients in India, of whom 1 million are frequent buyers. For kiranas as well as other small enterprises and merchants, METRO India has established itself as a reliable partner.
Its highest sales performance since entering the Indian market, METRO India produced sales of Rs 7700 crore (€926 million) in the fiscal year 2021/22 (FY ending September 2022).
Reliance Retail gains access to a vast network of METRO India stores in strategic locations throughout important cities, a sizable base of registered kiranas and other institutional customers, a strong supplier network, and some of the global best practices implemented by METRO in India through this acquisition. By using synergies and efficiencies across supply chain networks, technological platforms, and sourcing capabilities, the purchase will further expand Reliance Retail’s physical store base and capacity to better serve customers and small businesses.
All players in the retail ecosystem will benefit more from the mutually beneficial connection.
Speaking about this investment, Ms. Isha Ambani, Director, Reliance Retail Ventures Limited, said, “The acquisition of METRO India aligns with our new commerce strategy of building a unique model of shared prosperity through active collaboration with small merchants and enterprises. METRO India is a pioneer and key player in the Indian B2B market and has built a solid multi-channel platform delivering a strong customer experience. We believe that METRO India’s healthy assets combined with our deep understanding of the Indian merchant/kirana ecosystem will help offer a differentiated value proposition to small businesses in India”.