Reliance Industries Limited on Tuesday said that, its retail unit has acquired a majority equity stake in online pharma company Netmeds for a consideration around Rs. 620 crores. Just a week before this, Amazon had introduced “Amazon Pharmacy” into business. The oil-to-retail conglomerate said Reliance Retail has acquired a majority stake in Vitalic Health Pvt Ltd and its subsidiaries- collectively known as Netmeds.
RIL has 100% direct equity ownership of Vitalic but the investment is around 60% in the equity share. Vitalic and its subsidiaries viz: Tresara Health Private Ltd, Netmeds Market Place Ltd and Dadha Pharma Distribution Pvt Ltd. Isha Ambani, director of Reliance Retail Ventures said, “This investment is aligned with our commitment to provide digital access for everyone in India.” She also added, “The addition of Netmeds enhances Reliance Retail’s ability to provide good quality and affordable healthcare products and services, and also broadens its digital commerce proposition to include most daily essential needs of consumers.”
Vitalic was incorporated in 2015 and its subsidiaries are in the business of pharma distribution, sales and business support services. It subsidiaries also run an online platform- Netmeds which helps in order to connect customers to pharmacists and enable door step delivery of machines, nutritional health and wellness products.
Netmeds is promoted by Dadha Pharma, a Chennai-based company. The Dadha family’s pharmaceutical experience dates back to 1914, and later in 1972, they began manufacturing of drugs. The e-pharmacy business has seen a lot of action in the recent week. Amazon launched its “Amazon Pharmacy” in Bengaluru last week. Walmart owned Flipkart is also looking to foray in the space.
Lat month, Reliance industry has become the 1st Indian company to have a market capitalization of Rs. 13 lakh crores, and made a place in the top 50 most valued companies last week. RIL has hit its 52-week low in March i.e. around Rs. 868 and has also made an all time high of Rs. 2198.70 in July. Currently Reliance industry is in a consolidation between 2020-2200, and an investor shall buy after the price goes beyond 2200.
RRVL also informed that it will purchase more stake in Vitalic through secondary purchase and primary investment for at least 80% stake by April 2024. According to a Bloomberg report, RIL is in various states of negotiations to either buy-out or purchase stakes in Urban Ladder, an online furniture seller and Zivame, a lingerie maker.
So far, the oil, retail and telecommunications conglomerate has raised around Rs 1.52 lakh crore from leading technology companies including Facebook, Google, among others in exchange for a total of 32.8 per cent equity stake sale in its digital arm Jio Platforms. Reliance Industries has also raised funds through Rs 53,124 crore mega rights issue and sale to British energy giant BP in the Petrol-retail joint venture to become net debt-free nine months ahead of its deadline of March 2021.
NEWS REPORTED BY:
VRIDHI BHAGNARI.
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