Spencer’s Retail will acquire Nature’s Basket from Godrej Industries for ₹300 crore, in an all-cash deal. Shashwat Goenka, Head – Retail & FMCG, RP Sanjiv Goenka Group, and son of group patriarch, Sanjiv Goenka, spoke to BusinessLine on the acquisition and his plans ahead. Excerpts:

How will the acquisition affect Spencer’s?

From a top-line perspective, there is a ₹363 crore of sales equivalent. This will be added to our top-line. In terms of margins, Nature’s Basket has a healthy gross margin of 24 per cent.

And bottom-line?

Currently, Nature’s Basket is a loss-making entity. But we hope to turn it profitable.

Does the acquisition help strengthen Spencer’s footprints?

Absolutely. The two brands have strong omni-channel values and Nature’s Basket is strong in the online segment too. So, it gives us (Spencer’s) not just physical presence in the West (Indian markets), but also online footprint in the region.

You will continue with the ‘Nature’s Basket’ brand?

We will continue with the brand. Spencer’s is one of the aspirational brands in the organised retail segment. And Nature’s Basket fits in very well as they too are an aspirational retailer. Therefore, we have a strategic fit. The two will be complementing each other in terms of presence. And, all retailers run multiple formats.

Any timeline on profitability?

It is a bit premature to answer now. We need to be in the business for some months.

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