Arvind Mediratta, the Managing Director and CEO of Metro Cash & Carry, is unlikely to join Reliance Retail after the merger between the two companies. The German retailer is set to merge with Mukesh Ambani’s Reliance Retail in a deal worth Rs 2,850 crore, which is expected to be completed within a week.
Mediratta, who has been with Metro for over seven years, is expected to continue in his current role until the merger is complete. Following that, he is expected to take a break and work out his plans for the future in the coming months, according to sources familiar with the matter.
While Mediratta himself has not commented on the matter, a spokesperson for Metro Cash & Carry India said, “We do not comment on speculation.” The news of his departure from the company has surprised many in the industry, given his involvement in the merger exercise that followed Metro’s decision to reprioritize its global strategy at a time when the Indian operations needed cash to grow.
Mediratta, who is 55 years old, has a wealth of experience in the retail sector. Before joining Metro Cash & Carry, he worked with Walmart, Yum! Brands, and P&G, among others. During his tenure at Metro, he oversaw the expansion of the company’s B2B business in India, which now has 28 wholesale distribution centers and over 5,000 employees.
The merger between Metro Cash & Carry and Reliance Retail is expected to be a game-changer in the Indian retail market. Reliance Retail is already the largest retailer in India, with a network of over 12,000 stores across the country. The acquisition of Metro’s B2B business will further strengthen Reliance’s position in the market and help it expand its presence in the fast-growing wholesale sector.
The deal is also expected to benefit Metro Cash & Carry, as it will allow the company to focus on its core business in Europe and other international markets. As part of the agreement, Metro will retain its wholesale operations in India, which include its franchise operations and the exclusive ownership of the METRO brand in the country.
The Indian retail market has been growing rapidly in recent years, driven by rising incomes, urbanization, and changing consumer behavior. According to a report by the India Brand Equity Foundation, the market is expected to reach $1.3 trillion by 2025, up from $854 billion in 2019.
Reliance Retail has been at the forefront of this growth, with a strong focus on technology and digitalization. The company has been expanding its presence in the online retail market through its subsidiary JioMart, which has quickly become a major player in the space.
The acquisition of Metro’s B2B business will give Reliance Retail access to a large customer base of small and medium-sized enterprises (SMEs), which is a key segment in the Indian retail market. The deal will also help the company expand its reach in the food and grocery segment, which is one of the fastest-growing categories in the retail sector.
Overall, the merger between Metro Cash & Carry and Reliance Retail is expected to create significant synergies and drive growth for both companies. While Mediratta’s departure may come as a surprise to some, it is unlikely to have a major impact on the success of the deal, given the strong leadership and capabilities of both Metro and Reliance Retail.
The merger between Metro Cash & Carry and Reliance Retail is expected to be a game-changer in the Indian retail market, further strengthening Reliance’s position in the market and helping it expand its presence in the fast-growing wholesale sector. The acquisition of Metro’s B2B business will give Reliance Retail access to a large customer base of small and medium-sized enterprises (SMEs), which is a key segment in the Indian retail market.
