Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries (RIL), has acquired 100 percent stake in Tamil Nadu-based Shri Kannan Departmental Store Private Limited for Rs 152.5 crore.
RIL in a regulatory filing said that the investment will further strengthen the group’s retail operations and its presence in the state of Tamil Nadu and will further enable its retail and new commerce initiatives.
“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 Rs 152.5 crore,” the company said in a filing late on Wednesday evening.
Incorporated on September 15, 1999, Shri Kannan Departmental Store is engaged in the business of retailing fruits and vegetables, dairy, staples, home and personal care and general merchandise to consumers. It currently operates 29 stores across Coimbatore and nearby areas with a retail area of over 6 lakh square feet.
The company reported revenue from operations of Rs 415 crore, Rs 450 crore and Rs 481 crore and net profit of Rs 2 crore, Rs 3 crore and Rs 4 crore in FY2018-19, FY2017-18 and FY2016-17 respectively.
Retail has been a major focus of RIL and with its plan of ‘new commerce’, which is an offline-to-online initiative, the company aims to penetrate India’s retail market. Through the new commerce initiative RIL plans to link producers, traders, small merchants, brands and consumers through technology.