Infiniti buys Woolworth unit
Infiniti Retail, a subsidiary of Tata Sons, on Thursday said it has bought the Indian arm of Australian supermarket chain Woolworth for Rs 200 crore.business Updated: Sep 27, 2012 22:31 IST
Infiniti Retail, a subsidiary of Tata Sons, on Thursday said it has bought the Indian arm of Australian supermarket chain Woolworth for Rs 200 crore.
Infiniti Retail operates Croma and Croma Zip stores across India. Woolworths is a backend supplier for Croma since 2005.
The acquisition comes at a time when the Australian firm was reported to be planning to exit the specialty consumer electronics category and divest the business in Australia, New Zealand and India.
Woolworths India chairman Ramnik Narsey said, "Both parties entered into this venture with the intention of merging the wholesale and retail businesses once FDI regulations were relaxed. With our decision to exit the consumer electronics, we have decided to sell the wholesale business in India to Infiniti."
With the acquisistion Tata Son's investment in Infiniti has gone up to Rs 700 crore from about Rs 480 crore earlier.
Post the acquisition, Woolworths Wholesale (India) would be merged to Croma.
Tata Sons is expected to invest more in the expansion of Infiniti Retail. "The total size of the acquisition is A$35 million (Rs 193 cr)," Infiniti Retail MD & CEO Ajit Joshi said. "Tata Sons has invested R220 crore. The rest will be used for our expansion."