Nature's Basket competes with the likes of Future Retail Ltd-owned Food Hall and Bigbasket

Spencer's Retail Ltd will buy upmarket grocery chain Nature's Basket from Godrej Industries for Rs 300 crore ($42.76 million), the companies said on Friday.

Spencer's, a part of RP Sanjiv Goenka Group (RPG), already runs its own grocery stores in parts of the country.

The deal will give Spencer's access to the western part of India through 36 stores of Nature's Basket in Mumbai, Pune and Bengaluru, Shashwat Goenka, who leads RPG's retail unit, said in a statement.

Nature's Basket competes with the likes of Future Retail Ltd owned Food Hall, as well as Alibaba Group backed online grocery company Bigbasket.

"Nature's Basket has a strong portfolio of private label brands which has huge traction with its consumers," Mr Goenka said, adding that RPG would also benefit from the chain's online grocery business.

Spencer's, which reported its results separately, made a net profit of Rs 1.83 crore for the quarter ended March 31.