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Godrej Nature’s Basket acquires grocery e-store Ekstop.com

Godrej Group has acquired a small-sized e-commerce company through its retail arm Nature’s Basket, a subsidiary of Godrej Industries. Nature’s Basket has acquired Mumbai-based online grocery store Ekstop.com, reports Livemint.The report pegged deal value to be around Rs 30-40 crore.

Godrej Group has acquired a small-sized e-commerce company through its retail arm Nature’s Basket, a subsidiary of Godrej Industries. Nature’s Basket has acquired Mumbai-based online grocery store Ekstop.com, reports Livemint.The report pegged deal value to be around Rs 30-40 crore.

A separate e-commerce team has already been set up, which is offering products across companies such as Godrej Appliances, Godrej Properties and Godrej Industries. “We will acquire a small e-commerce company and its employees will work for us. Since it’s going to be a small business, we will run it ourselves and there will be no funding required through PE players,”Adi Godrej, Group Chairman was quoted in an earlier report as saying.

The report also mentions that currently Nature’s Basket is working on rebranding and integrating Ekstop.com as its online platform. The Ekstop management team is expected to join Nature’s Basket and the new platform is expected to launch March 15.

Mohit Khattar, CEO, Nature’s Basket told the Hindu Business Line,“Due to a non-disclosure agreement, we are not in a position to reveal the name of the e-commerce company we are acquiring. Nature’s Basket was one of the first companies within the group to engage in e-commerce through its own site.”

“Nature’s Basket today has 50 stores. Some of the older stores may have turned profitable, but as a company, it has yet to record profit. But we will be expanding the number of stores since scaling up will ensure profitability,” Khattar added.

Positioned as a gourmet store, Nature’s Basket existed as a division of Godrej Agrovet and was subsequently hived off as a subsidiary of Godrej Industries.The Group’s FMCG unit (Godrej Consumer Products) can also sell its products through the e-commerce platform of Nature’s Basket, which can serve as an additional distribution channel.

However, revenues from the e-commerce channel were not expected to be significant. “E-commerce is bound to grow, but sales will not be more than 20 per cent of the group’s existing revenues. It will still be a small part of our business,” Adi Godrej added.

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