Over the course of the previous few months, Reliance Industries, which is managed by the billionaire Mukesh Ambani, has been in discussion with METRO, and just last week, the German parent company consented to the offer from Reliance Retail.
According to industry sources, Reliance Industries will soon acquire the Cash and Carry division of German retailer METRO AG in India, for an estimated 500 million euros (Rs 4,060 crore). They added that 31 METRO Cash and Carry wholesale distribution centers, land banks, and other properties will be included in the deal.
Because of this, Reliance Retail, the largest retailer in the country, is going to expand its footprint in the B2B market.
When Metro Cash and Carry started in India
Cash and Carry wholesale is primarily distinguished by the clientele, it serves as well as the one-of-a-kind business model it employs. Instead of placing orders with a number of different vendors, registered business clients can go to a Cash & Carry location, select their own products, and take them back. Every day, more than 4,000 employees serve business customers at METRO stores all over the world with a vast range of up to 50,000 food and non-food products, all of which are offered under one roof at wholesale prices.
In July 2003, Bangalore became home to the very first wholesale distribution center that was established by METRO Cash and Carry India.
Business customers like kiranas, small merchants, hotels, restaurants, catering enterprises, workplaces, and institutions have found METRO Wholesale’s one-stop solution, business-to-business model to be a trustworthy and convenient one.
The wholesale division of METRO is known as METRO Cash and Carry. The company offers individualized services to its wholesale and retail clients in order to fulfill their regional as well as worldwide requirements. The METRO Group (AG) is present in 34 countries.
METRO Cash and Carry stores in IndiaÂ
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.
The big opportunity for Reliance
According to sources, discussions between Reliance Industries, which is managed by the billionaire Mukesh Ambani, and METRO have been going on for the past few months. Also, the German parent corporation accepted the offer from Reliance Retail just last week.
Both METRO and Reliance Industries declined to comment when contacted about the latest development in the situation.
The following is an excerpt from a statement made by a Reliance spokesperson: “Our organization considers numerous opportunities on a continuous basis.” On the other hand, a representative of Metro AG stated, “We do not comment on market rumors or speculations.”
Siam Makro conducts Lots Wholesale’s cash-and-carry trading business under the brand name LOTS Wholesale Solutions. It was one of the other retailers that was competing to acquire METRO Cash and Carry. Also, there was competition for METRO Cash and Carry from other retailers too.
Siam Makro, a subsidiary of Thailand’s Charoen Pokphand Group, pulled out of a deal to acquire METRO Cash and Carry India last month.
The holding company for all of the retail businesses that are part of the Reliance Industries group is called Reliance Retail Ventures Ltd (RRVL), and it is a subsidiary of Reliance Industries.
For the financial year that ended on March 31, 2022, RRVL announced that its consolidated revenue was around 2 lakh crore.
