Godfrey Phillips In Talks With Tata, Reliance, DMart To Sell 24Seven: Report

24Seven was set up in 2005 and currently has 145 operational stores spread across the Delhi National Capital Region (NCR), Punjab, and Hyderabad

Godfrey Phillips is reportedly holding discussions with Tata Trent, Reliance Retail, and Avenue Supermarts for a possible deal to sell the firm’s grocery wing, 24Seven, media reports stated.

Backed by the KK Modi Group, Godfrey Phillips is planning to sell 24Seven, reported The Economic Times. The report cited sources and said that the final decision of the deal will depend on the valuation. 

The senior leadership of the Modi Group has already begun discussions with entities and the talks are in different stages. Godfrey Phillips India, in an official filing dated April 12, said that it plans to divest the 24Seven unit after it conducted a detailed review of the loss-making retail business division.

The company in its filing said, “..decided to exit from carrying out the business operations of its retail business division… A decision in this regard was taken following a detailed review of the company's retail business division and after due consideration of the stakeholders' feedback, long-term performance, prevailing market conditions of the retail sector and long-term business strategy of the company.”

24Seven was set up in 2005 and currently has 145 operational stores spread across the Delhi National Capital Region (NCR), Punjab, and Hyderabad. The retail outlets provide customers a variety of products such as grocery items, staples, beverages, snacks, beauty and personal care items, etc. The outlets also provide ready-to-eat food products in select spaces. 

The report quoted another official and said that the growth possibility in the grocery retail industry could make 24Seven a profitable avenue if the unit can be expanded to include hyper-convenience grocery, staples, general merchandise, and in-store cafes. 

Tata Group’s retail division, Trent Ltd, oversees the grocery unit, Star Bazaar, and acquiring the 24Seven business might only provide marginal benefits for the company, the report noted as grocery accounts for a very small part of the group’s overall retail business. Other brands operated under the division include Westside and Zudio, both of which have witnessed swifter growth and expansion.

Reliance Retail Ventures operates the 7-Eleven chain since 2021 and has about 50 operational stores of the brand. The report noted that if the merger goes through, Reliance might consider merging its current retail grocery unit with 24Seven as the business model of both entities is quite similar. 

DMart operator- Avenue Supermarts, majorly focuses on grocery sales and is currently planning to increase its business.