Reliance Retail Ventures acquires stake in Vitalic Health

Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries Limited (RIL) has acquired equity shares of Vitalic Health Pvt Ltd (Vitalic) and its subsidiaries for a cash consideration of Rs 620 crore.

The said investment represents 60 per cent holding in the equity share capital of Vitalic and directs 100 per cent equity ownership of its subsidiaries, viz. Tresara Health Private Limited, Netmeds Marketplace Limited, and Dadha Pharma Distribution Pvt Limited.

The press release further stated that RRVL will continue to acquire an equity stake in Vitalic, through a mix of secondary purchase and primary investment, for at least 80 per cent stake by April 2024, with an option to increase to 100 per cent ownership.

Vitalic and its subsidiaries are in the business of pharma distribution and sales as well as in business support services. Its subsidiary also runs an online pharmacy platform namely, Netmeds to connect customers to pharmacists and enable doorstep delivery of medicines, nutritional health, and wellness products. Vitalic had a consolidated turnover of Rs 221.02 crore in FY 2020.

Reliance Retail has emerged as the fastest-growing retailer in the world and features among the top 100 retailers globally. The dimensions of the business span across 11,784 physical retail stores across 7,000+ towns and cities, direct to consumer, digital commerce channels, and B2B channels, serving millions of Indian consumers across underserved markets.

With the launch of Jiomart, Reliance is trying to capitalise on this vast network of retail stores that it has established. Such a network will surely help Vitalic and its subsidiaries with better reach and logistics, which will eventually help Reliance in entering into the lucrative business of online pharmacy.