Kedaara, Partners to buy Vishal Mega Mart from TPG, Shriram Group

Gurugram based supermarket chain, Vishal Mega Mart would be acquired by a consortium of Kedaara Capital and Swiss-based Partners Group from private equity company TPG Capital Management and Shriram Group, confirmed the purchasing combine.

 

The transaction expected to complete later this year after going through regulatory approval. As per reports, Kedaara and partners may value Vishal Mega Mart (VMM) for about Rs 5,000-5,500 crore.

 

VMM owns the franchise to the Vishal Mega Mart brand and supplies products to 230 hypermarket stores across India. These stores are operated by a network of local franchisees.

 

Vishal-branded hypermarkets target the value-focused customer segment and the brand has an entrenched presence in the north, east, and central regions, besides pockets in south India. They combine a private label, fast-fashion offering with a variety of general merchandise and food and grocery products. More than 60% of Vishal-branded franchised hypermarkets are in small towns that have a population of less than 1 million.

 

Nishant Sharma, Co-founder and Partner, Kedaara Capital said, “Led by a strong execution-focused team and supported by secular macro drivers, VMM has developed a highly replicable and scalable model offering consumers an aspirational assortment at a compelling value through its franchisee network.”

 

According to media reports, Kedaara will have a significant minority stake while partners will own a majority holding in the company.

 

“We believe the company offers a unique value proposition to an under-served customer segment and will continue to have strong tailwinds for a long time,” said Manas Tandon, Managing Director, Private Equity – Asia at Partners Group.