German retailer METRO AG has completed the sale of its Indian cash and carry business to Reliance Retail Ventures Ltd (RRVL) for INR 2,850 crore ($385 million). The deal includes all 31 wholesale stores operated by METRO Cash & Carry India and the entire real estate portfolio, which consists of six store-occupied properties. METRO India will continue to operate under the METRO brand during a transition period, with no noticeable changes for employees and customers. The acquisition will help Reliance Retail to strengthen its position in India’s growing retail sector, which is one of the fastest-growing markets globally.
METRO AG CEO Steffen Greubel said that he is convinced that Reliance, as the new owner, with its local expertise, will successfully lead the business into the future. The deal will reduce METRO’s net debt by EUR 0.4 billion ($0.48 billion) and support METRO’s sCore strategy implementation.
Reliance Retail Ventures Ltd is the holding company for the retail operations of Reliance Industries. For the financial year ending March 31, 2023, Reliance Retail’s revenue from operations was INR 2.30 lakh crore ($31.1 billion). The company is focusing on expanding its distribution network across geographies as well as product offerings in the Consumer Brands business.
METRO is a leading international food wholesaler, operating in more than 30 countries. In the financial year 2021/22, METRO generated sales of EUR 29.8 billion ($35.8 billion). The sale of its Indian cash and carry business to Reliance Retail Ventures Ltd will enable METRO to continue building on its growth momentum and take further steps to achieve its mid- and long-term ambitions.
