Reliance Retail's Recent Acquisitions For Business Growth

Reliance Retail, the retail arm of Reliance Industries Private Ltd (RIL), recently acquired various businesses and works towards its expansion. As a prominent FMCG player, Reliance Retail has emerged as the fastest-growing company, making it to the list of the world's emerging retail businesses. It has a diversified omni-channel presence in different cities of India through its integrated stores and digital e-commerce platforms. In addition, the company is also active in the pre-IPO market and offers Reliance Retail unlisted shares for trading. This blog will discuss Reliance Retail's major acquisitions in the last few years.

Key Details Of Reliance Retail & Its Business Model

Reliance Retail is the retail initiative by the Reliance Group, founded in 2006 and central to the Fast Moving Consumer Goods (FMCG) business. Today, Reliance Retail has over 10,000 stores across 6,000 cities in India. The company is not listed on any stock exchange yet, allowing retail investors to buy Reliance Retail pre-IPO shares.

The business model of Reliance Retail caters to the five segments via its retail service. It includes grocery, fashion & lifestyle, consumer electronics, pharma retail, and connectivity. The company has adopted a multi-prong business strategy through which it operates a chain of retail stores in different parts of India.

As per the data shared by the company, Reliance's Retail turnover in 2019 crossed Rs 1,00,000 Lakh crore. The same year, it expanded its retail stores and operated across 6,600 cities. In the last five years, the CAGR of the company remained at 10%, which makes it worth investing in. As a result, Reliance Retail Limited share price also increased, attracting new investors.

Reliance Retail's Major Acquisitions In The Recent Years

Over the last few years, Reliance Retail has been working on its business expansion plan and has grown rapidly. Various big companies like Metro Cash & Carry, V Retail Pvt Ltd, and Insight Cosmetics have been acquired by an Indian retail giant. Here are the details of the recent acquisitions of Reliance Retail:

Metro Cash & Carry

In 2022, Reliance Retail acquired German-based retail Metro Cash & Carry in an acquisition deal of $344 million (Rs 2850 crore). The deal includes all 31 retail stores operated by Metro Cash & Carry in India. In addition, Reliance Retail also got an entire real estate portfolio, including six store-occupied properties. Metro Cash & Carry is an International food wholesaler which operates in more than 30 countries and generated over 29.8 billion euros in sales in FY 21-22.

Insight Cosmetics

Another venture acquired by Reliance Retail is an Indian-based brand, Insight Cosmetics. In an acquisition deal, Mukesh Ambani's Reliance Retail has acquired a majority of Insight cosmetics stakes and entered the beauty cosmetic business. As per the sources, the deal was worth $10-$15 million. Insight Cosmetics was founded by Mumbai-based entrepreneur Dinesh Jain in 2001 and has more than 12,000 retail and novelty stores nationwide.

V Retail Pvt Ltd

Recently, Reliance Retail acquired a Telangana-based footwear brand and apparel retail V Retail Pvt Limited. This company operates a retail chain under the brand name called Centro Style. The total amount for the acquisition deal is not disclosed by any company publicly. V Retail Pvt Ltd has over 32 stores in Andhra Pradesh, Telangana, and Karnataka. Reliance Retail strengthened its product offering with this acquisition deal and targeted the South Indian market.

How Does It Impact Reliance Retail Unlisted Shares?

For any business, acquisitions, and expansion have been seen as positive growth. However, Reliance Retail is an unlisted company whose business performance primarily reflects its pre-IPO shares value. One of the crucial aspects for any investor is to check Reliance Retail Limited share price. You will get a better idea of a company's change in unlisted shares price by analysing its price history. In recent years, Reliance Retail acquired various national and international brands that impacted Reliance Retail pre-IPO shares.

As we can see in the above graph, Reliance Retail Limited share price has fluctuated in the last few months. At the time of acquisition deals, the price of Reliance Retail unlisted shares surged from Rs 2925 per share to Rs 3267 per share over the three months.

After performing steadily, the Reliance Retail share price went down. Based on the current market data, Reliance Retail unlisted share price today is Rs 2625, which is expected to increase with the company's growth in the retail sector.

Invest in Reliance Retail With Stockify

With rapid business expansion and brand acquisitions, Reliance Retail has become one of the fastest brands in the FMCG sector. The company is expected to bring its IPO in the coming years, for which Reliance Retail IPO price is not disclosed yet.

However, you can take advantage of the company's rapid growth by investing in Reliance Retail unlisted shares. Stockify allows retail investors to easily buy unlisted shares by analysing factors like Pre-IPO share price, EBITDA, debt-per-equity, and more. Our experts are available 24/7 to assist you with the pre-IPO stocks' buying or selling process. To get started, connect with us now!