Newstrack

Metro Cash & Carry expands pan-India

Sayoni Bhaduri & Rupkamal Sarma - Hyderabad

German group Metro Cash & Carry, a self-service wholesaler, is planning to launch its distribution centres in Mumbai and Kolkata by the last quarter of 2007. Alan Clayton, operations director, said, "We are looking at pan-India expansion plans and have identified more than 50 cities with a population exceeding one million."

The group is also focusing on the hospitality industry and small retailers. The construction of the distribution centre in Mumbai is already on its way near Bhandup. The selection of location in Mumbai was made keeping in mind the skyrocketing real-estate prices and the traffic flow in the area. Clayton said, "Since we cater to the businesses, and often people need to leave someone in charge of the business we have to be located where it is easily accessible." Metro Cash & Carry is a sales brand of the Metro group, an international retail company.

Unlike Bangalore, where the group does not have an APMC license to trade in fresh fruits and vegetables and similar products, it is hopeful of getting the license in Mumbai. It stocks 10,000 non-food products and 8,000 food products. This ranges from tissue papers, office equipment, kitchen equipment to fresh fruits and vegetables as well as wines. It is known to be specialists in wine with a stock of nearly 180 labels from around the world. They do not intend to be competition to the local shops. "We are friends of the kirana store. We have no intentions of going into retails, with 550 stores worldwide and in 28 countries presently and are going to be in 30 by the end of this year." said Clayton.

The sales strategy of the company involves sending mailers, describing the various products with prices available, to various properties and stores who can register with the group. The price advantage the company provides varies from 30-70 per cent from the market price. Apart from this it is more or less word-of-mouth. Each of the distribution centres is made with an investment of 18-20 million Euros over an area of 10,000 square metres. The distribution centres have 100-120 suppliers and 300 merchandises providing for each store. To be able to use the Metro Cash & Carry services, the owner of an establishment has to be registered with a license and should have the membership of the distribution centre.

A 100 per cent shareholding company, Metro Cash & Carry began in 1964. It is headquartered in Düsseldorf, Germany. It launched its first wholesale distribution centre in India for the local hospitality industry in 2003 in Bangalore and in November 2006 the group launched a third centre in Hyderabad. It will reach Pakistan later this year.