Reliance Industries has agreed to buy German firm Metro AG’s wholesale operations in India for Rs 2,850 crore as the conglomerate run by billionaire Mukesh Ambani seeks to strengthen its dominant position in India’s mammoth retail sector. Reliance Retail Ventures Ltd (RRVL), a subsidiary of the oil-to-telecom conglomerate, signed definitive agreements to acquire a 100% equity stake in Metro Cash & Carry India Pvt Ltd for a total cash consideration of Rs 2,850 crore, subject to closing adjustments, the two firms said in a joint statement.

Reliance is India’s biggest brick-and-mortar retailer with over 16,600 stores, and a strong wholesale unit would further deepen its operations in India.

Metro started operations in India in 2003 as the first company to introduce a cash-and-carry business format in the country and currently operates 31 large format stores across 21 cities with about 3,500 employees.

These stores sell products such as fruits and vegetables, general grocery, electronics, household goods and apparel to business customers like hotels, and restaurants as well as offices and companies, small retailers and kirana stores. Half of the stores are in southern India.               Source: PTI