MUMBAI: The subsidiary of Reliance Industries (RIL), Reliance Retail Ventures Limited (RRVL) has acquired a 100% stake in Shri Kannan Departmental Store Private Limited based in Tamil Nadu for Rs 152.5 crores.
In a regulatory filing, RIL said that this investment will further strengthen the group's retail operations along with its presence in the southern state. Also, it 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 percent of the equity share capital of Shri Kannan Departmental Store Private Limited (SKDS) for a consideration of Rs 152.5 crore," read the company's filing statement on Wednesday.
Shri Kannan Departmental Store, that incorporated on 15th September 1999, deals in the business of dairy staples, fruits and vegetables, home and personal care and general merchandise for customers. Currently, it operates 29 stores across Coimbatore and nearby areas with a retail area of over 6 lakh square feet.
In the last three financial years that is FY2018-19, FY2017-18 and FY2016-17, 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 respectively.
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RIL's major focus is retail and with its plans of "new commerce", it has an aim to penetrate India's retail market. RIL plans to link producers, traders, small merchants, brands and consumers through technology by its new commerce initiative.
Shares of RIL on the BSE traded in the red on Thursday. At 10.17 a.m., shares of RIL were trading at Rs 1,326.75, lower by Rs 12.40 or 0.93 percent from its previous close.