Chennai: Spencer’s Retail will acquire premium grocery and fresh fruit store Nature’s Basket from Godrej Industries for Rs 300 crore.
Nature's Basket, a subsidiary of Godrej Industries, 2005, had a turnover of Rs 363 crore in FY19. It operates 36 stores in Mumbai, Pune and Bengaluru and this will help Spencer’s Retail re-enter western India after exiting the region in 2013. Spencer's Retail, part of RP Sanjiv Goenka Group, has a presence in over 35 cities in India.
“We believe this deal fits in well with Spencer’s omnichannel strategy,” Shashwat Goenka, Sector Head–Retail & FMCG, RP Sanjiv Goenka Group said.
Tanya Dubash, Executive Director and Chief Brand Officer, Godrej Group, said, “Both Spencer’s and Nature’s Basket are positioned as experiential grocery ret-ailers, and that is the first of many synergies that this acquisition brings.”
Analysts said consolidation is the way forward in retail industry, as scale matters most in this low-margin business. Nature's Basket has been incurring losses and in FY18 it reported a loss of Rs 62 crore. Spencer’s reported a profit of Rs 7.94 crore.
