Reliance Retail has acquired a Coimbatore-based retail company that operates more than two dozen grocery outlets.
New Delhi: Reliance Retail has acquired a Coimbatore-based retail company that operates more than two dozen grocery outlets and the buy-out will help the Mumbai conglomerate to expand its presence in the southern state, according to a regulatory filing.
Reliance told the National Stock Exchange that its subsidiary Retail Ventures has acquired 786,191equity shares representing 100% of the equity share capital of Shri Kannan Departmental Store (SKDS) for Rs 152 crore.
Founded in 1985, SKDS currently operates 29 grocery outlets in Coimbatore, Erode and Pollachi regions and has an annual revenue of Rs 415 crore.
Reliance said the acquisition will “further strengthen” its retail presence in Tamil Nadu and help its omni-channel venture dubbed “new commerce” that seeks to synergize its vast network of brick-and-mortar stores with its upcoming digital platform that also plans to attract largest suppliers to small kiranas to conduct business.
A Reliance executive said the company could either change the Shri Kannan Departmental Store stores into Reliance Fresh outlets or may even keep the Sri Kannan brand.
Shri Kannan Departmental Store is the latest retail buy-out for Reliance Retail.
In 2018, Reliance Brands acquired Genesis Luxury that sells brands like Burberry, Giorgio Armani, Jimmy Choo and Canali in India. The country’s largest retailer operates more than 700 outlets of Reliance Fresh and Reliance Smart nationwide.
