Reliance Retail is close to acquiring Kerala’s leading electronics and grocery retail chain, Bismi which runs 30 large format stores in the state with a mix of electronic and hypermarket formats. Reliance is in advanced stages of due diligence and the deal is likely to be concluded before Diwali, two senior industry executives who are part of the negotiations said.
Bismi is a family-controlled venture owned by entrepreneur VA Ajmal who leads the business as its managing director. The company has revenue of around ₹800 crore. While the Ajmals are seeking a valuation of about ₹600 crore, Reliance Retail is currently negotiating on the valuation which could ultimately be lower, the executives said.
An email sent to Reliance Retail remained unanswered. Mr Ajmal said the company would not comment on speculations and rumours.
Of the 30 stores of Bismi, most are a combined format of electronic stores and hypermarkets spread over 30,000 square feet (sq ft) to 40,000 sq ft while a few are standalone single format outlets of up to 10,000 sq ft. The penetration of modern retail is high in the South and the deal will give Reliance a bigger toehold in the market.
Reliance Retail has previously undertaken three acquisitions in South — Shri Kannan Departmental Store in Tamil Nadu for ₹152 crore, Kalanikethan which is a leading saris and ethnic wear retailer in South, and Jaisuryas Retail which is a regional grocery chain.
Reliance is India’s largest retailer by revenue, number of stores and profitability. It is the market leader in organized retail across formats like electronics, grocery, fashion and now seeking a bigger pie in e-commerce dominated by Walmart-owned Flipkart and Amazon.
