REI Six Ten Retail, the retail arm of REI Agro was launched on March 27, 2007. The company had been delisted in September as it decided to go in for a de-merger exercise. The retail arm of the company was de-merged into a separate entity called REI Six Ten Retail Ltd. convenience store chain 6Ten’s retail network has already spread to over 320 stores across NCR, Chandigarh, Mohali, Panchkula, Amritsar, Ludhiana, Ambala, and Nagpur with 3,10,000 sq.ft of retail space on investment of Rs.150 crore.REI Six Ten Retail is a zero debt company
After the demerger resulting company issued nine equity shares of Rs 10 each for every 20 equity shares of Rs 10 each held in REI Agro. Upon the de-merger, the share capital of the company was “reduced by cancelling a sum of Rs 4 from each of the equity shares of Rs 10 and thereafter five such equity shares of Rs 6 each have been consolidated into three fully paid-up equity shares of Rs 10 each.
The paid-up equity capital of the company after the demerger adds up to Rs 289.30 lakh, which equals to 2.89 crore equity shares of a face value of Rs 10 each. Before the restructuring, the paid-up equity capital of the company was Rs 4,817.17 lakh, consisting of 4.81 crore equity shares. REI Six Ten Retail got listed on April 27, 2009 on the bourses.The advisors to the demerger exercise were ARSK Associates, Chartered Accountants and Khaitan and Company, Solicitors and Advocates for the demerger.
The 6Ten neighbourhood convenience store chain, now a separate listed company was a division of REI Agro Ltd, India’s leading producer and exporter of basmati rice, and offers products such as grocery items, FMCGs, and fruit & vegetables. Targetting middle class consumers the convenience stores are typically located close to consumers; the format does not require the store to be located in main markets or on main roads. It is one of the leading retail brands in fresh vegetables & fruits.
The rationale of the 6Ten stores was to capitalise on the REI’s relationships at the retail level. All 6Ten stores are on COCO (company-owned company operated) basis. The Company is fast expanding its presence in the northern states including Punjab & Harayana. The Company targets to open over 50 stores across these two states in next one year.
Business area of the company:
REI Six Ten Retail stores are Speciality Food Stores offering products such as grocery items, FMCG products, fruit & vegetables to consumers.
Wet Grocery and Private Label constitute majority of the sales of the company.