M&A

M&A

Reliance Retail in talks to acquire Kerala's grocery retail chain Bismi

Economic Times  

Reliance Retail is close to acquiring Kerala's leading electronics and grocery retail chain, Bismi which runs 30 large format stores in the state with a mix of electronic and hypermarket formats. Reliance is in advanced stages of due diligence and the deal is likely to be concluded before Diwali. Bismi is a family-controlled venture owned by entrepreneur VA Ajmal who leads the business as its managing director. The company has revenue of around INR 800 crore. While the Ajmals are seeking a valuation of about INR 600 crore, Reliance Retail is currently negotiating on the valuation which could ultimately be lower. Of the 30 stores of Bismi, most are a combined format of electronic stores and hypermarkets spread over 30,000 square feet (sq ft) to 40,000 sq ft while a few are standalone single format outlets of up to 10,000 sq ft. Reliance Retail has previously undertaken three acquisitions in South -- Shri Kannan Departmental Store in Tamil Nadu for INR 152 crore; Kalanikethan, a saris and ethnic wear retailer, and Jaisuryas Retail which is a regional grocery chain.