- Reliance Retail (RRVL), a subsidiary of Reliance Industries Limited (RIL), has acquired Shri Kannan Departmental Store Private Limited (SKDS) for Rs 152.5 crore
Reliance Retail (RRVL), a subsidiary of Reliance Industries Limited (RIL), has acquired Shri Kannan Departmental Store Private Limited (SKDS) for Rs 152.5 crore to purchase 7,86,191 equity shares representing 100 percent of SKDS ‘ equity capital incorporated on September 15, 1999.
The company is engaged in retailing to customers of fruits & vegetables, dairy, food, home, personal care, and general merchandise.
SKDS currently operates 29 stores across Coimbatore and surrounding areas with more than 600,000 sq. of retail space. Ft. Operating revenues were Rs 415 crore, Rs 450 crore, and Rs 481 crore, while net profit was Rs 2 crore, Rs 3 crore, and Rs 4 crore in 2018-19, 2017-18 and 2016-17, respectively.
The above-mentioned investment will further strengthen the group’s retail operations and presence in Tamil Nadu state and further, facilitate retail and new trade initiatives. No governmental or regulatory approvals for the said investment were necessary, RIL said.
SKDS, founded on 15 September 1999, is engaged in the retailing of fruit & vegetables, dairy, food, home & personal care and general consumer goods. SKDS currently operates 29 stores across Coimbatore and surrounding areas. According to a report by RIL to stock exchanges, with a market area of over 6 lakh sq ft.
SKDS registered revenues from Rs 415 crore, Rs 450 crore, and Rs 481 crore operations as well as net profit from Rs 2 crore, Rs 3 crore, and Rs 4 crore operations in FY19, FY18 and FY17 respectively.
Reliance Industries said the investment will further strengthen the group’s retail operations and presence in the Tamil Nadu state and further facilitate retail and new trade initiatives.
Last year, Reliance Retail reported more than 50 Crore Falls and clocked a turnover of Rs 1.3 lakh crore. With a presence in almost 7,000 locations, the company has over two-thirds of its 10,415 stores in Tier II, Tier III and Tier IV cities.
It aims to be among the top 20 retailers in the world over the next five years by leveraging blockchain, the Internet of Things, artificial intelligence and other pan-India-based, new technologies.
Recently, Reliance Retail has topped the list of’ 50 fastest-growing retailers worldwide between FY 2013-2018′ in the Deloitte Global Retailing Powers ranking for 2020. In its annual report, Deloitte ranked 250 businesses worldwide based on their FY2018 revenues. The Indian retail giant has this year secured the 56th position against the previous year’s 94th place.
“India-based retailer Reliance Retail jumped from sixth in the FY2017 ranking to the first position in FY2018, posting a CAGR of 55.8 percent,” Deloitte report said.
Reliance Retail is the only Indian company to be featured within it, according to the report. More than half of the retail outlets were from Japan, and nearly a quarter are from China and Hong Kong.
