Reliance Retail acquires Metro Cash & Carry for Rs 2,850 crore! 

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Reliance Retail acquires Metro Cash & Carry for Rs 2,850 crore!
METRO is a leading international specialist in wholesale and food retail which operates in 34 countries and employs more than 97,000 people worldwide
METRO Cash & Carry is India's leading business-to-business wholesaler, serving the needs of traders, hotels, restaurants, caterers and offices etc.
METRO India started operations in India in 2003 as the first company to introduce cash-and-carry business format in the country and currently operates 31 large format stores across 21 cities with about 3,500 employees
The multi-channel B2B cash & carry wholesaler has reach to over 3 million B2B customers in India, of which 1 million are frequently buying customers, through its store network and eB2B app
METRO India has established itself as a trusted partner for kiranas and other small businesses and merchants
In the financial year 2021/22 (FY ended September 2022), METRO India generated sales of ₹7700 crore (€ 926 million), its best sales performance since its market entry into India.
81.5 percent contribution from traditional unorganized retail (The unorganized retail consists of local Kirana shops, vendors of clothes, vegetables, mobile vendors etc., who sell unbranded products on a lower scale)
Organized brick-and-mortar retail makes up 12 percent of the overall retail market,
Online sales channels at 6.5 percent.
Reliance has a 20 per cent market share in the organised food and grocery business, with a store count nearly triple that of its nearest competitor 'More' in the segment.
Reliance Industries will acquire German firm Metro AG's wholesale operations in India for ₹2,850 crore to strengthen its dominant position in India's mammoth retail sector.
Reliance Retail Ventures Limited (‘RRVL’), a subsidiary of Reliance Industries Ltd, signed definitive agreements to acquire 100% equity stake in METRO Cash & Carry India Pvt Ltd
Through this acquisition, Reliance Retail gets access to:
A wide network of METRO India stores located in prime locations across key cities,
A large base of registered kiranas and other institutional customers,
Strong supplier network and
Some of the global best practices implemented by METRO in India
The acquisition will further strengthen Reliance Retail’s physical store footprint and ability to better serve consumers and small merchants by leveraging synergies and efficiencies across supply chain networks, technology platforms and sourcing capabilities
Reliance is India's biggest brick-and-mortar retailer with over 16,600 stores, and a strong wholesale unit would further deepen its operations in India.
The transaction is subject to certain regulatory and other customary closing conditions and is expected to complete by March 2023
The B2B segment is considered to be a low-margin business and multinationals such as Carrefour have exited from the country.
While E-commerce major Flipkart Group has acquired a 100 per cent stake in Walmart India Pvt Ltd, which operates the Best Price cash-and-carry business.
Retailers, including Siam Makro which operates Lots Wholesale cash and carry trading business, under the brand name LOTS Wholesale Solutions was also in the race to acquire Metro Cash & Carry business.
Reliance forayed into FMCG with the launch of the brand 'Independence' for staples, processed foods, beverages and other daily essentials, rivalling the likes of ITC, Tata Consumer Products Ltd, Patanjali and Adani Wilmar.