 "Metro Cash & Carry plans up to 8 new stores in India this year")
New Delhi: Germany’s Metro Cash & Carry is embarking on an aggressive expansion in India with plans to open 7-8 new wholesale stores across the country this year entailing an estimated investment of around Rs 550 crore.
The firm that entered India in 2003 said it has identified 40 top cities in the country to expand presence in the coming years.
“We are going to have a serious number of store addition with 7-8 new stores to be set up this year,” Metro Cash & Carry India Managing Director Rajeev Bakshi said while announcing the firm’s entry into Delhi’s market.
[caption id=“attachment_220553” align=“alignright” width=“380” caption=“Globally Metro Cash & Carry operates around 700 stores in 30 countries, while in India it operates only nine stores. Reuters”]
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Asked about investments, he said one store entails an average investment of around Rs 70 crore. Bakshi, however, did not share the details of the company’s long term plans.
The new outlet in East Delhi, which will be operational on 23 February, is the tenth wholesale store of the company in India, set up with an investment of Rs 45 crore.
The company’s new outlet near Karkarduma Court in East Delhi, where rival Carrefour also has a store, is spread over 80,000 square feet of area and would offer assortment of 10,000 products under one roof.
Globally Metro Cash & Carry operates around 700 stores in 30 countries, while in India it operates only nine stores.
So far the company has invested close to 150 million (around Rs 1,000 crore) in India, Bakshi said but did not comment on whether the company has achieved break even in India or not.
When asked if the company was scouting for partners here or plans to enter retail he said: “Neither do we plan to enter retail, nor are we looking for any partnerships as of now.”
Commenting on the issue of FDI in multi-brand retail in India, he said: “FDI in multi-brand retail is not relevant to us as we operate only in the wholesale segment.”
India allows 100 percent FDI in wholesale and has already seen players like Germany’s Metro Cash & Carry, US’ Walmart and France’s Carrefour set up a considerable number of stores here.
When asked about the company’s pricing strategy he said: “We have to benchmark ourselves with prices at any wholesale market/mandis in a particular city.” Bakshi said Metro has already identified another site in West Delhi.
“Continuing our focus on building the local economy, we have already created 300 jobs in the state with its first distribution centre in Delhi,” he said.
Metro commenced operations in India by opening its first store in Bangalore. Through its nine wholesale stores operational in Bangalore, Hyderabad, Mumbai, Kolkata, Ludhiana and Jalandhar, the company caters to kirana stores, corporates, hotels, restaurants, caterers, schools, offices and institutions.
PTI