Reliance Industries has won the bid to German Metro AG’s Cash & Carry business activities in India over Thailand-based CP Group and Lightspeed Venture Partners.
In a deal estimated to be Rs 4,060 crores, Mukesh Ambani’s Reliance Industries is set to acquire German Metro AG’s Cash and Carry business operations in India.
In a 500-million-euro deal, Reliance Industries acquired 31 wholesale distribution centers, and land banks, among other assets from the German giant as a result of discussions that had been ongoing for a few months. With such an acquisition, the presence of Reliance Industries in India will be felt much more in the B2B model.
Metro is one of the biggest wholesalers on a global level and operates in more than 30 countries. In India. it is operating multiple stores in Bangalore, Delhi, Mumbai, Hyderabad, Kolkata, Zirakpur, Jalandhar, Ahmedabad, Indore, Lucknow, Meerut, Nasik, Vijaywada, Hubballi, Guntur, Tumkuru, Ghaziabad to name a few.
Thailand-based Siam Makro, a unit of the Pokphand Group, competed with other companies to acquire Metro’s business in India. Under the moniker LOTS Wholesale Solutions, the group operates the Lots Wholesale german metro cash-and-carry trading business. The firm later withdrew from the bid.
According to information made public by PTI, RSBVL, a Reliance subsidiary and Sanmina Corporation entered into a partnership to set up electronics manufacturing with german metro card. Reliance is also made its presence felt in the fashion industry by launching a premium fashion as well as a lifestyle store brand called AZORTE.
B2B Model:
When a transaction is made between two businesses rather than a government or an individual customer (B2C), it is said to be made using the B2B model (B2G). In India, it is anticipated that B2B marketing expenditures will increase by 10.3% by 2022. This model is rampant in the automobile sector where parts are purchased separately and assembled by the manufacturers.
Cash and Carry Business Model:
The Cash-and-Carry business model is essentially an upfront payment requirement system; however, this system specifically disallows any forms of credit transactions. One such recent acquisition has been that of Walmart India Pvt Ltd. by Flipkart Group. Walmart also runs a cash-and-carry business operation called Best Price.
(Inputs from various media sources.)
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