Metro Cash & Carry invest Rs 1,690 cr to add 26 stores by 2020

Firm has so far invested Rs 2,300 cr in India and is one of the largest organised wholesalers

Metro Cash & Carry India, the Indian arm of the German multinational wholesale company, which opened its first store in Ahmedabad recently, aims to open another 26 stores across the country by 2020 for an estimated investment of about Rs 1,690 crore.

Arvind Mediratta, chief executive officer (CEO) and managing director (MD) of Metro Cash & Carry India, did not divulge the exact investment figures on the upcoming stores but roughly mentioned it to be around Rs 60-65 crore per store. The company at present operates 24 stores across the country, including its 55,000-square-foot Ahmedabad store that will help in creating over 350 jobs.

Metro Cash & Carry is upbeat on the Gujarat market and has other projects in the pipeline for the state. It already has a store in Surat. The company has so far invested Rs 2,300 crore in India and is one of the largest organised wholesalers.

The company caters to over 1.1 million customers across the country, of which around 50 per cent are kiranas, apart from hotels, restaurants and caterers (HoReCa). Mediratta feels that the Indian market would slowly move towards the HoReCa segment in the coming years. "At present, it comprises only 15 per cent of the wholesale business in India. In Europe, for example, it is 70 per cent of the business," he said.

The Ahmedabad store sources at least 20 per cent of its assortment from regional suppliers. Fresh produce for the store, such as fruits and vegetables, will be sourced from the farm centre at Prantij Village and the local mandi in the city.

Across India, Metro works with 2,500 farmers and has over 5,000 suppliers for over 7,000 product categories.

Mediratta feels that the kirana store model is the one to stay and succeed in a country like India. Metro is already handholding kirana owners to modernise their operations, automate inventory management, billing, ordering etc. At present, around 96 per cent of the grocery business is unorganised.