Reliance’s Metro India, Mukesh Ambani’s daughter Isha got the deal done for 2850 crores.
New Delhi: Reliance Industries is continuously increasing its dominance in the retail market. Reliance Industries Limited has taken another step in this direction by acquiring another company. Reliance is going to acquire German company Metro Cash and Carry India Limited. This acquisition will happen through Reliance Retail Ventures Limited. Reliance will spend Rs 2850 crore to buy 100% stake in Metro Cash & Carry India.
Metro will be of Reliance
With the acquisition of German firm Metro Cash & Carry India Pvt Ltd (Metro India), Reliance will take another step towards establishing its presence in India’s vast retail sector. Metro India is doing business in India since the year 2003. They have a good hold mainly in the wholesale market. It was the first company to introduce cash and carry business format in India. The company has its retail market in 21 cities of the country. There are about 3500 employees. The company’s holding is up to 30 lakh customers. Out of this, there are 10 lakh people who are regular customers of Metro, who shop through the B2B app. Metro had sold 7700 crores in the financial year 2021-22.
How will Reliance benefit?
Metro has a large network of store network. The company has established itself as a major player in the grocery market in India. This company is becoming one stop for grocery shopkeepers and small businessmen in the country. Reliance’s retail market will get a big boost after the acquisition of the company. The company is already in the retail market with Reliance Jio Mart, Reliance Trend, Smart Bazaar. After the acquisition of Metro, their hold in the retail market will further increase.
Isha Ambani got the deal done
Reliance Retail is in the hands of Isha Ambani. Isha Ambani, who is heading the company, was actively involved in the deal. After long negotiations, Isha got the deal done for Rs 2850 crore. After the acquisition of the company, Reliance will get a vast network of Metro India stores in major cities of the country. The benefit of this network will further strengthen Reliance’s position in the retail market. Apart from this, Reliance will also have the advantage of a large base of registered kiranas and customers, a strong supplier network.
