fbpx
HomeNewsReliance is getting ready to fight D-Mart and hypermarkets as it tries...

Reliance is getting ready to fight D-Mart and hypermarkets as it tries to close a deal with Metro this month.

OYO

OYO debuts first luxury hotel in Dubai, targets expansion of premium property portfolio

0
OYO, the h͏ospitality an͏d travel tech platform, has launched its first luxury hotel in Dubai, Palette Royal Reflections Hotel and Spa. This ͏mov͏e comes...
The Leela Gandhinagar Diya Menu

The Leela Gandhinagar unveils Diya’s delectable new menu with exciting additions

0
Diya, th͏e͏ ͏upsc͏ale͏ In͏di͏a͏n͏ specialty restaurant loc͏at͏ed ͏at ͏The Leela Gandhinagar,͏ h͏͏as rece͏ntly ͏͏ov͏͏͏er͏haule͏d ͏͏it͏͏s menu,͏͏ in͏͏͏troducing ͏a͏ variety of ͏ne͏w͏ d͏ish͏es͏͏͏ to͏ off͏er...

The oil-to-telecom conglomerate Reliance Industry’s mega acquisition of the German retailer METRO AG’s Cash & Carry business in India, which is likely to be finalized in time for the group’s late founder Dhirubhai Ambani’s birthday later this month, will give the company the option to convert Metro’s 31 stores into multi-brand retail chains and compete with retailers such as D-Mart.

“As a result of the transaction, majority Indian ownership will be established, which will make it possible to even transform the operations into a business that caters to consumers. It will make shopping and comparing prices a more pleasant experience overall. Nevertheless, a decision must be made about it, “Times of India cited an anonymous source who was familiar with the transaction.

The rules that govern foreign investment in India prevent foreign companies from entering the multi-brand retail business. As a result, Indian companies like Metro are restricted to the cash-and-carry wholesale market and must sell their goods to hotels, offices, and Kirana stores. The revenue generated from sales to traders accounts for approximately one-half of Metro’s total revenue, with another one-third coming from offices, according to TOI.

Therefore, adjustments to the business model will need to be made to accommodate the B2C business that will be added to the wholesale stores. After Metro was crippled by the Covid-induced lockdowns and saw the impact that sanctions had on its Russian operations, the company made the decision to forego its original plan to expand its operations in India by investing more money there.

In a transaction that is rumored to be worth approximately 500 million euros (or Rs 4,060 crore), Reliance is rumored to be acquiring the India unit of Metro Cash & Carry, which includes 31 wholesale distribution centers, land banks, and other assets owned by METRO Cash & Carry in the country.

Because of this, Reliance Retail, the largest retailer in the country, will have an easier time expanding its presence in the B2B market.

Sources claim that Reliance has finished its due diligence on Metro’s India business, which turns a profit and generates revenues of approximately one billion dollars annually. According to reports from TOI, however, there are some concerns regarding employees and the status of stores that are currently being discussed, in addition to the completion of the legal aspects of the transaction.

There are some concerns among the 4,000 employees of Metro regarding the change in ownership as well as the new working environment, but it is likely that Reliance is eager to keep the people on staff. The majority of the 31 stores are considered to be successful from a financial standpoint.

Latest articles

Karnataka milk prices up by INR 2; new packs offer extra 50 ml to consumers

Following t͏h͏e recent f͏u͏e͏l price hike in the state, the Karnataka Milk Federation announced...

Govt-backed ONDC to impose small transaction fee this FY: CEO Koshy

In ͏order to cover its operating ͏c͏ost͏s, the government-ru͏n͏ Open Network for Digital Commerce...

Allied Blenders IPO subscribed 0.41 times on Day 1; non-institutional investors take lead

Allied Blenders and Distillers Ltd, known ͏f͏or ͏its Officer’s ͏C͏hoice Whisky, ͏experi͏enced robust demand...

Zomato widens lead over Swiggy with 56-57% market share in food delivery sector: Goldman Sachs

Aft͏er Prosus released Swiggy's operat͏ional p͏erformance for 2023͏, Goldman Sachs, in a r͏e͏search note...

Related Articles

Masala Chai named second-best non-alcoholic beverage globally in 2023 by TasteAtlas

Masala Chai has clinched the title of the second-best non-alcoholic beverage in 2023, as...

E-commerce roll-up firm GlobalBees secures $18 Mn in debt funding from Avendus

GlobalBees, an e-commerce roll-up company, has secured INR 150 crore ($18 million) in debt...

Samosa Singh launches diverse lineup of ‘ready-to-cook’ guilt-free Samosas with over 20 irresistible flavors

Samosa Singh, a renowned Indian snack brand, has unveiled its innovative "Ready-to-Cook" samosa packs...
× Drop a, Hi?