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Reliance Retail on acquisitions mode to grow its business

In the fast moving world, the style of growing business has changed a lot. In the prior time, every businessman mostly tries to build the business by their own to compete in the market. And if competing is difficult, then they try to acquire the company. In the last decade, we saw resurgence of start-ups in the world focusing on solving unique problem in the society. And if you see carefully, the Merger and Acquisition (M&A) has increased a lot in these start-ups, reason being, to grow fast and stay ahead in the competition, the bigger fish swallowing the smaller ones. M&A is the only viable solution which companies like Amazon, and Wal-Mart are doing in the e-commerce world from quite a sometime. To join them in fray, the Indian e-commerce giant Reliance Retail is also working with similar strategies and trying to acquire e-commerce companies with different business segments.

E-commerce players, where Reliance Retail is looking interested?
1. Reliance Retail acquired 100% stakes in Shri Kannan Departmental store in the month of March-2020.

Reliance Retail Ventures has bought 100% stake in Shri Kannan Departmental Store Private Limited – 05.03.2020

2. Recently, during the lock-down period, Reliance Retail was looking to acquire 100% stakes in the Net-med, an online company which sells medicines. With this acquisition, Reliance Retail can easily cater to one of the biggest sector of the economy and only sector which is flourishing in the COVID-19 time.

Reliance Retail looking to buy stake in Netmed – 07.05.2020

3. The recent news published in the Times of India, Reliance Retail is also looking to acquire Urban ladder, the online furniture seller and Milk basket, an online milk seller. Reliance Retail is looking to acquire Urban ladder roughly for 225 Crores and discussions are at advance stage. Milk-basket was initially in talk with other players like Amazon and Bigbasket but the discussions halted on valuation front. Now, the discussions are going on with Reliance Retail.

UnlistedZone View
We at UnlistedZone are in view that the strategies of Reliance Retail to acquire businesses and to grow inorganically are the only way out to survive in this highly competitive market. Else the likes of Amazon and Wal-Mart, with no dearth of money will kill the competition and will rule the market forever.

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