2024-04-17 14:13:19
New Delhi: K.K. Modi Group’s investment company Godfrey Phillips is preparing to sell its retail grocery chain 24Seven. According to sources, for this he is in talks with Tata Trent, Reliance Retail and Avenue Supermarkets. Godfrey Phillips India said in an exchange filing on April 12 that it plans to exit the loss-making 24Seven chain. This decision has been taken after a detailed review of the retail business division of the company. A source said that Godfrey Phillips is in talks with various companies and it will depend on the valuation. The source said that the leadership of Modi Group has so far held talks in this regard with such groups which have a clear synergy. . The talks are at various stages. 24Seven operates approximately 145 stores in Delhi-National Capital Region (NCR), Punjab and Hyderabad. Launched in 2005, the chain’s stores offer grocery, staples, snacks, beverages, personal care products and products from Modi Group’s own beauty brand Colorbar. There are also ready-to-eat food counters at some large format stores. The source said, ‘The grocery retail sector is seeing a lot of momentum and despite losses, expansion of the 24Seven format is possible.’
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Who is in the race?
Another source said Tata Group’s retail company Trent Limited operates the grocery chain Star Bazaar. But grocery accounts for a small share in its total retail business. 24Seven can play an important role in this. Among Trent’s other retail chains, Westside and Judio have expanded much faster than Star Bazaar. Reliance Retail Ventures has a partnership with Texas-based company 7-Eleven brand. The company operates about 50 stores. It started in 2021. A source said that if Reliance buys 24Seven, it can merge its convenient store chain with it. Both the formats are of the same type. Similarly, DMart running company Avenue Supermarts is also keeping an eye on 24Seven. Her business is mainly grocery focused and she wants to grow this segment rapidly.
Sameer Modi, managing director of Modi Enterprises, did not answer questions in this regard. Spokespeople for Tata Trent and Avenue Supermarkets also declined to comment. “We do not comment on media speculations and rumours,” a Reliance Retail spokesperson said in an email. Godfrey Phillips’ retail business division generated revenue from operations of ₹396 crore in FY 2023, which is 9.3% of the company’s total revenue. The company mainly manufactures cigarettes. But the retail business division of the company was in loss.