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Reliance Retail acquires Shri Kannan Departmental Store for Rs 152.5 crore

IBEF:  March 06, 2020

Mukesh Ambani-owned Reliance Retail Ventures Ltd (RRVL) has acquired a 100 per cent stake in Shri Kannan Departmental Store Private Ltd (SKDS) for Rs 152.5 crore (US$ 21.82 million).

RRVL is a subsidiary of Reliance Industries Ltd. RRVL acquired 7,86,191 equity shares of SKDS.

SKDS, is a 20-year-old company and has a portfolio in the business of retailing fruits & vegetables, dairy, staples, home & personal care and general merchandise to consumers. Presently, company operates 29 stores across Coimbatore and nearby areas with a retail area of over 6 lakh sq. ft.

“The investment will further strengthen the group’s retail operations and presence in the state of Tamil Nadu and will further enable retail and new commerce initiatives,” said RIL in a regulatory filing.

SKDS has reported revenue from operations of Rs 415 crore (US$ 59.38 million), Rs 450 crore (US$ 64.39 million) and Rs 481 crore (US$ 68.82 million) and net profit of Rs 2 crore (US$ 0.29 million), Rs 3 crore (US$ 0.43 million) and Rs 4 crore (US$ 0.57 million) in FY2018-19, FY2017-18 and FY2016-17, respectively.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.