Kolkata-based Spencer's Retail Ltd on Friday said it will acquire 100 percent stake in grocery chain Nature's Basket -- a wholly-owned subsidiary of Godrej Industries Ltd -- for a cash consideration of Rs 300 crore.
The RP-Sanjiv Goenka Group company, which runs 156 grocery stores in 39 cities, on Friday reported a consolidated net profit of Rs 2.39 crore for the fiscal 2018-19 against a loss of Rs 14.12 crore a year ago. Spencer's Retail provides a wide range of quality products to its key consumers across categories such as food, fashion, personal care, home essentials, electrical, and electronics.
Shashwat Goenka, the group's sector Head, Retail and FMCG, said, "Nature's Basket will make Spencer's a truly national player, giving it access to the west of India through its 36 stores in Mumbai, Pune, and Bengaluru."
The deal is subject to approval of the shareholders of both the companies.
"Looking forward, we realised... we need to pass on the torch to owners who have prioritised retail in their portfolio strategy and have the relevant ecosystems to take the business to the next level," said Tanya Dubash, Executive Director and Chief Brand Officer, Godrej Group.
Spencer's Retail chain doubled its sales to Rs 2,215 crore for the year under review compared to Rs 1,051 crore in FY18, the company said.
Its consolidated net profit for the March quarter stood at Rs 1.83 crore, with a topline of Rs 531 crore.
In the fiscal ended March 31, total sales of Nature's Basket was Rs 338 crore. Mumbai-based Nature's Basket, a neighbourhood convenience store format grocery retailer, sells products ranging from fresh fruits and vegetables, fish and meat since 2005.
Spencer's Retail will acquire NBL's entire share capital, comprising 445,830,000 fully paid-up equity shares of Rs 10 each.