Financial Daily from THE HINDU group of publications
Tuesday, Oct 21, 2003
Financial Daily from THE HINDU group of publications Tuesday, Oct 21, 2003 |
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Marketing
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Retailing Metro Cash & Carry opened in Bangalore Our Bureau
Dr Hans_Joachim Korber, Chairman and CEO, Metro AG, at the opening ceremony of Metro Cash & Carry Distribution centre in Bangalore on Monday. (below): Bangalore Traders Action Committee and Swadeshi Jagran Manch activists protesting against the opening of the Metro centre at APMC Yard. — G R N Somashekar
Bangalore , Oct. 20 GERMAN retailing giant Metro Group launched its first Indian B2B distribution centre, Metro Cash & Carry, in Bangalore today. The second one, at Kanakapura in southern Bangalore, will follow in three weeks' time, Metro Group CEO, Dr Hans-Joachim Koerber, said. Starting Tuesday, the Cash & Carry will offer some 17,500 food, non-food products, electronic, FMCG and white goods at prices significantly below the MRP to registered traders, caterers, restaurants and various other small and medium businesses in an initially cash-based transaction. Metro has invested Rs 176 crore (euro 35 million) in its India venture so far and employs a total of 750 people. Over 90 per cent of the products are sourced locally. "However, we still have the Agricultural Poduce Market Committees restrictions (by way of the Karnataka APMC Act) which do not allow us, up to now, to sell fresh products such as fruits and vegetables. We are confident that this hindrance will be solved soon in good cooperation with the government," Dr Koerber said. The purchase is strictly through membership of retailers and according to Mr Harsh Bahadur, Country Manager and MD of the Bangalore-based Metro Cash & Carry India, it has the membership of 1.6 lakh. The German giant is now present in 28 countries and 2,330 locations. The B2B centre opened amidst high security and has been facing protests by the local trading bodies and the Agricultural Produce Market Committees who say the Metro's pricing is predatory. The international trading and retailing group, with 2002 sales of euro 51.5 billion, is focussing on Europe and Asia. It recently launched two Cash & Carry outlets each in Japan and Vietnam, besides Russia and Croatia. It also has 17 centres in China.
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