Metro Cash and Carry s a supplier to kiranas and other small businesses and merchants.
Reliance Retail Ventures has said it will buy German retailer Metro AG India i.e. Metro Cash and Carry for Rs 2850 crore.
Metro India started its India operations in 2003 and right now operates 31 large format stores across 21 cities with about 3,500 employees. It is a supplier to kiranas and other small businesses and merchants. It clocked sales of Rs 7700 crore in FY 22 (FY ended September 2022).
Isha Ambani, director, Reliance Retail Ventures Limited, said in a release, “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.”
Dr Steffen Greubel, CEO, METRO AG, said, “With METRO India, we are selling a growing and profitable wholesale business in a very dynamic market at the right time. We are convinced that in Reliance we have found a suitable partner who is willing and able to successfully lead METRO India into the future in this market environment. This on one hand will benefit both our customers and our employees, for whose loyalty and performance we are very grateful, and on the other hand, will enable METRO to focus on accelerating growth in the remaining country portfolio."
The transaction is subject to certain regulatory and other customary closing conditions and is expected to complete by March 2023.