Kolkata-based Spencer's Retail, part of RP Sanjiv Goenka Group, said on May it would acquire Godrej Industries' grocery chain Nature's Basket for around Rs 300 crore. Spencer's Retail that runs 120 stores, including 37 Hyper stores in over 35 cities in India, said the acquisition of Nature's Basket acquisition will make it a national player, giving it access to western region through the latter's 36 stores in Mumbai, Pune and Bangalore.
In a regulatory filing, Spencer's Retail said its board of directors at a meeting held Friday approved a proposal for acquisition of entire 100 per cent stake held by Godrej Industries Ltd in its wholly owned subsidiary Nature's Basket Ltd. The consideration for the proposed transaction is around Rs 300 crore subject to adjustments in terms of the share purchase agreement to be executed with Natures Basket and Godrej Industries, and shareholders approval, it added.
Spencer's Retail will acquire the entire share capital of Nature's Basket comprising 44,58,30,000 fully paid-up equity shares of Rs 10 each. "This acquisition will bring in many synergies in Spencer's business and fits in well with Spencer's omnichannel strategy," Spencer's Retail said.
Commenting on the acquisition, RP Sanjiv Goenka Group Sector Head - Retail & FMCG Shashwat Goenka said, "Nature's Basket has a strong portfolio of private label brands, which has huge traction with its consumers. We believe there is huge potential to expand this to Spencer's stores". Nature's Basket stores are located in prime residential locations, having high sales throughput per square feet, and will add Rs 363 crore of top line to Spencer's portfolio, he added.
Natures Basket Ltd (NBL), a 100 per cent subsidiary of Godrej Industries, reported turnover of Rs 338.28 crore for the year 2018-19. The company sells various food products and beverages through its retail stores and online platform. Godrej Group Executive Director and Chief Brand Officer Tanya Dubash said the sale of Nature's Basket was necessary to "further unlock the immense potential of this brand and to grow it to even greater heights".
"...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. The retail industry is consolidating and to flourish in this environment, scale has become increasingly important," she added. Spencer's Retail is a multi-format retailer that provides products across categories such as food, personal care, fashion, home essentials, electrical and electronics.
(With inputs from agencies.)