Metro plans stores in Mumbai, Kolkata

Metro Cash & Carry, the global German wholesale major, will invest about Euro 40-45 million for setting up two new marts in Kolkata and Mumbai, expected to become operational by the first quarter next year. It is also planning to enter Punjab.

Metro currently has two stores in Bangalore and one in Hyderabad. While it sells fruits, vegetables and pulses at the Hyderabad store, it cannot sell these in Bangalore due to restrictions under the Agricultural Produce Marketing Committee (APMC) Act. The act does not permit private companies to procure directly from farmers.

Each mart requires an investment of Euro 20-25 million. "The two new stores will have a combined area of 75,000 square feet," said Scott.

"Construction is currently underway for the Mumbai and Kolkata centers. We will begin operations in Mumbai from March 2008 and Kolkata a month later," he said.

While Metro is keen to expand to other states, it is particularly looking forward to Punjab. "We see a good opportunity to source as well sell our products in Punjab," added Scott.

On competition from Wal-Mart, he said, "We are the concept leaders in cash & carry. We have successful business in 29 countries." He added that Metro had no intention of entering the front-end business.

Metro has a customer base of 100,000 registered buyers in Bangalore and 60,000 in Hyderabad.