Reliance Retail acquires TN department store chain for Rs152.5 cr
06 Mar 2020
Reliance Retail Ventures Ltd, a unit of Reliance Industries Ltd, has acquired Coimbatore, Tamil Nadu-based Shri Kannan Departmental Store Pvt Ltd to expand operations in southern India.
“Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries Limited, has acquired 7,86,191 equity shares representing 100 per cent of the equity share capital of Shri Kannan Departmental Store Private Limited (SKDS) for a consideration of Rs152.5 crore,” the company stated in a regulatory filing.
SKDS, incorporated on 15 September 1999, is engaged in the business of retailing fruits and vegetables, dairy, staples, home and personal care and general merchandise to consumers. SKDS currently operates 29 stores across Coimbatore and nearby areas with a retail area of over 6 lakh sq. ft.
SKDS reported revenue from operations of Rs415 crore, Rs450 crore and Rs481 crore and net profit of Rs2 crore, Rs3 crore and Rs4 crore in FY2018-19,
FY2017-18 and FY2016-17, respectively.
Reliance said the acquisition will further strengthen the group’s retail operations and presence in Tamil Nadu and will further enable retail and new commerce initiatives.
Reliance Retail Ventures is the holding company of Reliance Retail Ltd, which began operations in 2006 and is India’s largest brick-and-mortar retailer. It owns brands such as Reliance Fresh, Reliance Smart and Reliance Digital.
Reliance Retail Ltd emerged as the most valuable retailer in India late last year after parent Reliance Industries proposed a scheme that would allow the unit’s shareholders to exchange their stock for RIL shares. The scheme valued Reliance Retail around about Rs2,40,00 crore.
Reliance Industries has been snapping up companies across sectors, to expand its presence in the retail sector. Its recent acquisitions include British toymaker Hamley’s, which it bought for Rs 620 crore. Reliance Retail also in March last year acquired menswear brand John Player’s from consumer goods company ITC Ltd.
In March, Reliance Industries agreed to acquire an 83 per cent stake in Mumbai-based hyperlocal delivery platform Grab. The group said it would also invest Rs82.04 crore to acquire 82 per cent stake in Bengaluru-based software solutions firm C-Square.