Germany’s Metro sees India as ‘growth area’, plans major expansion

The Germany-based Metro Group plans to triple the number of its wholesale stores in India to 50 by 2020, as it has identified the country as one of its key growth markets.

Metro is the fifth-largest retailer in the world by revenues,  after Wal-Mart, Carrefour, Tesco and Kroger.

Metro will renew its expansion drive for India where its sales division, Metro Cash & Carry, has been active since 2003, the group said in a statement from New Delhi today.

At present, Metro runs 16 distribution centres in 12 cities across India, which will now become one of the key expansion countries for the German trade group.

"India has always been an important future growth market of Metro and we have seen continuous like-for-like growth recently in India. Now we decide to inject extra momentum into our expansion course there to operate 50 distribution centres by 2020," said Olaf Koch, chairman of the Metro AG board and chief executive officer of Metro Cash & Carry.

He said India joins Russia, China and Turkey as one of the four focus expansion countries in the group's portfolio.

Metro Cash & Carry India managing director Rajeev Bakshi said the company has been consolidating its market position by translating its understanding of the customer into daily practices, tailored projects and innovations.

"Metro has established itself as a responsible and relevant member of the community. This provides a firm foundation for us to switch our expansion into the fast lane now," Bakshi added.

Metro Cash & Carry has developed a local distribution network in India over the past decade, supplying a range of customers from small kirana stores to hotels and restaurants.

The company's expansion plan comes on the heels of the decision by Walmart Stores Inc last month to focus on the cash-and-carry business in India, with plans to open 50 more wholesale stores, besides starting online sales (See: Walmart plans 50 new wholesale stores, e-commerce in India).

US-based Walmart had broken up with India's Bharti group from their cash-and-carry joint venture last year and chose not to enter the multi-brand retail segment. But cash & carry or wholesale outlets can have 100 per cent foreign direct investment, and is therefore a safer bet against political shenanigans.