Reliance Retail is close to acquiring Kerala's leading grocery and electronics chain, Bismi, which operates 30 megastores in the state with a mix of electronic and hypermarket formats. Two senior industry executives involved in the negotiations said Reliance is in advanced stages of due diligence and the deal is likely to close before Diwali.
Bismi is a family business owned by entrepreneur VA Ajmal, who runs the company as managing director. The revenue of the company is around Rs 800 crore. While Ajmals is seeking a valuation of around Rs 600 crore, Reliance Retail is currently negotiating a valuation that could ultimately be lower, the executives said.
The email sent to Reliance Retail remained unanswered. Mr Ajmal said the company would not comment on speculation and rumours.
Of Bismi's 30 stores, most are a combined format of electronic stores and hypermarkets spread over an area of more than 30,000 square feet (sqft) to 40,000 square feet, while some are stand-alone single outlets. Format. 10,000 square feet. Alto in the south and the deal will give Reliance a greater presence in the market.
Reliance Retail previously undertaken three acquisitions in the south: Shri Kannan department store in Tamil Nadu for Rs 152 crore, Kalanikethan which is a leading retailer of saris and ethnic clothing in the south, and Jaisuryas Retail which is a regional grocery chain.
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