Gurugram-based Vishal Mega Mart is all set to change hands, once again! Capital firm TPG has agreed to sell Vishal Mega Mart to Partners Group and Kedaara Capital. According to people close to the matter, the undisclosed deal is expected to be around Rs 5,000 crores (approximately $790 million). Vishal Mega Mart is a major supplier to over 230 hypermarkets spread across India and it sells Fashion, General merchandise and Grocery and household items.
Most of these hypermarkets are located in towns and cities with population less than 1 million, giving the company a stronghold in Tier I and Tier II markets.
In a statement, Vishal Mega Mart CEO Gunender Kapur said, “We believe we have found the ideal partners for this ambitious next phase in Partners Group and Kedaara Group and expect to benefit from their combined track records of working with fast-growing consumer businesses”.
After the 2008 Global Economic Crisis, Vishal Mega Mart sales dwindled, debt increased due to rapid expansion, forcing it to sell its retail, wholesale, and franchise businesses to TPG and Chennai-based Shriram Group for INR 70 crore (around $10.5 million).
Currently, Partners Group manages around $74 billion in investments based out of Swizterland while India based Kedaara Group has been managing around $1.5 billion in investments. Kedaara’s other notable investments within retail space include Vedant Fashions which sells ethnic wear under the brand “Manyavar”.