RP Sanjiv Goenka Group-owned Spencer’s Retail announced on Friday that it is set to acquire 100% stake in Nature’s Basket, a wholly-owned subsidiary of Godrej Industries for a cash consideration of Rs 300 crore.
Nature’s Basket (NBL), a neighbourhood convenience store format grocery retailer that has been operating since 2005, sells products ranging from fresh fruits, vegetables, fish, meat, artisanal breads, FMCG and staples.
The NBL acquisition will give Spencer’s Retail access to the western parts of India through its 36 stores in locations like Mumbai, Pune and Bengaluru.
Spencer’s Retail itself is a multi-format retailer providing a wide range of quality products across categories such as food, personal care, fashion, home essentials, electrical and electronics to its key consumers.
Specialty sections such as Spencer’s gourmet, patisserie, wine and liquor, and the recently launched Epicuisine section are some of the key differentiators in its hypermarket stores.
Shashwat Goenka, sector head – retail and FMCG, RP Sanjiv Goenka Group, said Nature’s Basket will make Spencer’s a truly national player. “These stores are located in prime residential locations, have a high sales throughput per square feet, and will add Rs363 crore of top line to the Spencer‘s portfolio,” he said.
Goenka also pointed out that both Spencer’s and Nature’s Basket are positioned as experiential grocery retailers, and that is the first of many synergies that this acquisition brings. “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. It also has a strong e-commerce presence, and we believe that fits in well with our Omni channel strategy at Spencer’s,” he said.
For the financial year 2019, NBL has a turnover of Rs338.28 crore, that witnessed a 17% rise compared to the previous year.
Tanya Dubash, executive director and chief brand officer at Godrej Group, said the retail industry is consolidating and to flourish in this environment, scale has become increasingly important.
“Looking forward, we realised that 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. Spencer’s Retail is very keen to further strengthen the brand and strongly accelerate the growth of the business,” she said.
Source: financialexpress.com