Spencer's Retail, part of the RP Sanjiv Goenka Group, reported turnover of Rs 2,187 crore for the year ended March 31 and announced a plan to acquire Nature's Basket, a wholly-owned subsidiary of Godrej Industries, for Rs 300 crore.
Nature's Basket is a neighbourhood convenience store format grocery retailer with products ranging from fresh fruits and vegetables, fish and meat, artisanal bread, fast-moving consumer goods and staples.
Spencer's is a multi-format retailer providing quality products across categories such as food, personal care, fashion, home essentials, electrical and electronics to its key consumers. It has specialty sections like epicuisine, gourmet, patisserie, wine and liquor.
"Nature's Basket will make Spencer's a truly national player, giving it access to the west of India through its 36 stores in Mumbai, Pune and Bengaluru," said Shashwat Goenka, Head of Retail and FMCG at the RP Sanjiv Goenka Group.
"These stores are located in prime residential locations, have a high sales throughput per square feet, and will add Rs 363 crore of top line to the Spencer's portfolio," he said in a statement.
Spencer's reported a healthy gross margin of 21.24 per cent during 2018-19 with positive earnings before interest, tax, depreciation and amortisation (EBITDA) of Rs 41.73 crore and profit after tax of Rs 7.94 crore.
The total number of stores increased by 29 to 156 from 127 stores as on March 31, 2018. The company has expanded its presence to 39 cities by entering Haldia, Purulia and Konnagar in West Bengal. The total trading area also increased to 13.69 lakh square feet from 11.59 lakh square feet last year.
"We are planning to add another 3 lakh square feet trading area in FY 2019-20," said Goenka. "Our intent to bring the exoticism to retail through the varied assortment, experience and customer service in coming years.