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Spencer’s buys a basket from Godrej; costs ₹300 crore

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Spencer's acquire 100% stakes in Godrej's Nature's Basket.

Spencer’s acquire 100% stakes in Godrej’s Nature’s Basket.

Nature’s Basket was a wholly-owned subsidiary of Godrej Industries. Spencer’s has bought 100% stake in this subsidiary of Godrej. The Kolkata-based retail chain has now gained Nature’s Basket’s online platform. Last year, Godrej earned 9,969 cr, out of which ₹291 cr was a turnover from Nature’s Basket. 

The recent changes and acquisitions in the grocery market are evident to investors and companies alike. First, Grofers and now Godrej’s Nature’s Basket. 

Read More: Grofers gets delivered $200M by SoftBank’s Vision Fund

On 17th May, RP Sanjiv Goenka (RPG Group) owned- Spencer’s announced the acquisition of Godrej’s Nature’s Basket. The company is set to buy a 100% stake in the gourmet retail chain. The deal was inked at ₹300 cr.

Lodha Capital Markets had adviced Godrej on this deal.

Spencer’s to expand its foothold

This deal will give the company hold on 36 Nature’s Baskets present in strategic locations. These locations include places like Mumbai, Bangalore and Pune. The Kolkata-based retail chain will also gain access to Nature’s Basket’s online platform.

Godrej Group’s executive director Tanya Dubash saw that Spencer’s was very keen to unlock the subsidiary’s “immense potential”.

Godrej’s retail chain was known to stock up gourmet products like imported cheeses, Parma Ham, products from the US, etc.

The acquisition will benefit Spencer’s in a number of ways! Premium brands will now be right on the shelves. This acquisition will make sure that premium products and value go hand-in-hand. This will in-turn increase the number of consumers choosing to shop in the Kolkata-based retail chain. The company’s private label will now have more visibility which will boost its margins.

RPG Group (owner of Spencer's Retail) Chairperson: Harsh Goenka.

RPG Group Chairperson Harsh Goenka.

The real reasons behind Tanya Dubash selling out Nature’s Basket were very calculative. The subsidiary was incurring losses worth ₹62 crThus, this motivated Godrej to search for a buyer. Also, It was high time Godrej had to focus on its core competencies, rather than burning capital on loss.

 

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