The electric distribution system (EDS) is prone to faults leading to power interruptions. The present energy market demands that electricity utilities invest more in different measures to improve the performance of the EDS. The approach proposed here details a composite dual-phased methodology to improve the reliability and efficiency of the power delivered by the EDS. In the first phase, the optimal allocation of auto-reclosers (AR) is undertaken by employing a newly formulated algorithm. The determination of the total number and location for AR placement is based on the economic analysis of two factors, i.e., AR investment-maintenance cost and total benefit earned in terms of reliability improvement due to AR placement. The analysis also takes into account the impact of power outages on different load types, the load growth rate, and the inflation rate. Further, to enhance the efficiency of the AR-incorporated EDS, the technique of Radial Distribution System Remodelling is employed in the second phase. This method searches for a radial configuration that delivers power at minimum line losses. These phases comprising complex combinatorial operations are aided by a fresh hybrid of the Sine Cosine Algorithm, Krill Herd Algorithm, and a genetic operator of Differential Evolution. The results obtained from its application on the IEEE 69-bus distribution test system prove the credibility of the suggested formulation.