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RP-Sanjiv Group’s retail arm Spencer’s Retail has acquired Grodrej group’s premium food retailing venture, Natures Basket, for around Rs 300 crore in an all-cash deal. Nature’s Basket operates 36 stores in Mumbai, Pune and Bengaluru. Nature’s Basket is a wholly-owned subsidiary of Godrej Industries.
In a stock exchange notification, Spencer’s said this deal will enable the retailer access to the West where it has no presence and also strengthen its omn-channel capabilities.
Tanya Dubash, executive director and chief brand officer at Godrej Group, said to further unlock the immense potential of the Nature's Basket brand and to grow it to even greater heights, the group decided to “pass on the torch to owners who have prioritized retail in their portfolio strategy and have the relevant ecosystems to take the business to the next level.”
She further added Spencer’s Retail is very keen to further strengthen the brand and strongly accelerate the growth of the business at a time when the retail industry is consolidating. Nature’s Basket has been operating since 2005.
RP Sanjiv Goenka Group sector head (retail and FMCG) Shashwat Goenka said Nature’s Basket will make Spencer’s a national player, giving it access to the West. “These stores are located in prime residential locations, have a high sales throughput per square feet, and will add Rs 363 crore of top line to the Spencer‘s portfolio,” he said.
Goenka said 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,” he said.
Nature’s Basket in 2018-19 clocked Rs 338.28 crore sales. Spencer’s revenue from operation in 2018-19 was Rs 2187.19 crore and the retailer clocked its first full year maiden profit at Rs 9.73 crore.