Mumbai: The Wadhawan group on 5 Septemebr marked its entry into the retail segment in southern India with the acquisition of S Mart, a Bangalore-based retail company.
The group has acquired around 76% stake in S Mart through its retail arm Wadhawan Food Retail Pvt Ltd (WFRL) for an undisclosed amount.
S Mart is a chain of retail food and grocery stores with 13 outlets in prominent residential areas of Bangalore, primarily operating its supermarkets on the neighbourhood format with specific focus on home delivery.
“This acquisition is a part of our expansion plan and marks our foray in southern India. Currently, we have acquired around 76% of S Mart and very soon we will acquire nearly 96% of the company,” WFRL Director, Kapil Wadhawan, said in a statement here.
This acquisition would provide WFRL with the local knowledge to operate in Bangalore efficiently and “we wish to leverage this learning by setting up another 50 S Mart retail stores in Bangalore by the end of next fiscal”, Wadhawan said.
WFRL already has a presence in the retail space with Spinach in retail food and grocery segment in Maharashtra and in non-store format of Direct to Home business through Sangam.
In addition, it operates in north through Sabka Bazaar. In Maharashtra, the company also has a management contract with an established chain of co-operative stores Maratha Co-operative.
WFRL has a presence in the consumer market with 89 stores across India and plans to open 1,500 stores over the next four years.