Metro Cash & Carry to expand India presence

The first global retailer that succeeded in creating a niche in India, Germany’s Metro AG now plans to invest Rs 400 crores to expand its network of wholesale stores in the country. In a submission to the Registrar of Companies last week, the company intimated that it will raise the amount from its parent company through equity infusion, for the purpose.

Despite making an entry into wholesale retail market before others, Metro was not able to grow compared to its rivals, US-based Walmart and home-grown Reliance Retail in terms of store count. While Reliance Retail has 43 stores, Walmart operates 20 wholesale stores and has announced aggressive expansion plans. Metro, still the largest wholesaler by revenue has 16 outlets but it plans to increase the count to 50 by 2020.

Metro will continue to press ahead with its international expansion: alongside Russia, China and Turkey, India will count among its key growth countries in future. The footprint of the wholesale business Metro Cash & Carry is set to expand considerably in India.