News Update

Reliance Industries to acquire German MNC Metro AG’s India business for Rs. 2,850 Crore

• ByStartupStory     |    December 22, 2022

Reliance Industries Ltd is set to acquire German firm Metro AG’s wholesale operation in India for Rs. 2,850 Crore under the growth is life mantra. Following this, Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries, seeks to consolidate its dominance in India’s dynamic retail sector. The transaction is subject to regulatory and other customary closing conditions and is expected to close by March 2023, according to the company.

The Mukesh Ambani-owned conglomerate “today signed definitive agreements to acquire a 100% equity stake in Metro Cash & Carry India for a total cash consideration of 2,850 crore, subject to closing adjustments,” according to a joint statement.

“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,” it said.

Commenting on the growth, RRVL Director Isha Ambani said: “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 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,” she added.

Metro AG CEO Steffen Greubel 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.” 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.

Metro AG is a German multinational company dealing in wholesale and food retail in 34 countries. Metro has six wholesale distribution centers in Bangalore, four in Hyderabad, two each in Mumbai and Delhi, and one each in Kolkata, Jaipur, Jalandhar, Zirakpur, Amritsar, Ahmedabad, Surat, Indore, Lucknow, Meerut, Nasik, Ghaziabad, Tumakuru, Vijayawada, Visakhapatnam, Guntur and Hubballi.

Follow Startup Story