Two regional Indian grocery retail chains are effectively merging, creating a national player.
Spencer’s Retail, part of RP Sanjiv Goenka Group, says it will pay US$42.76 million to acquire upmarket grocery chain Nature’s Basket from Godrej Industries.
The deal will give Spencer’s access to the western part of India through 36 stores of Nature’s Basket in Mumbai, Pune and Bengaluru, according to Shashwat Goenka, head of RPG. It will also strengthen the company’s omnichannel capability.
Tanya Dubash, executive director and chief brand officer at Godrej Group, said the sale would unlock “the immense potential of the Nature’s Basket brand” allowing it to grow faster.
“We have passed on the torch to owners who have prioritised retail in their portfolio strategy and have the relevant ecosystems to take the business to the next level,” she said.
Nature’s Basket was launched in 2005.
Goenka said the Nature’s Basket stores are located in prime residential locations, have a high sales throughput per square feet, and will add to the top line of Spencer‘s grocery portfolio.
“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 both chains were positioned as experiential grocery retailers and there were many synergies in the acquisition.