The Hindu Business Line : Metro Cash & Carry sees ‘no threat’ from new entrants

Bangalore, Aug. 6 Global giant Metro Cash & Carry, which made an Indian foray four years ago, sees ‘no threat’ from new entrants in the wholesale business.

“In India, our business model of offering a one-stop location for business, especially hotels, restaurants, caterers and small retailers is working well,” Mr Martin Dlouhy, Managing Director, Metro Cash & Carry India, told Business Line.

He said this in a reaction to the formal agreement reached between Bharti Enterprises and Wal-Mart Stores Inc today to establish Bharti Wal-Mart Pvt Ltd, a joint venture for wholesale cash-and-carry and back-end supply chain management operations in India.

Looking at expansion

Metro, backed with a first-mover advantage, is poised for ‘rapid expansion’ across the country and is looking forward to working closely with suppliers and customers in new markets it plans to enter into.

Commenting on the view that private wholesalers should be restricted from directly sourcing agri and food products from farmers, Mr Dlouhy said that a modern and efficient supply chain for distribution of both food and general merchandise is a pre-requisite for rapid economic growth.

Fair prices, reduction of wastage and quality enhancement were some of the advantages of a modern and efficient supply chain for distribution of food and general merchandise, he said.

For instance, in India, Metro Cash & Carry has already trained over 40,000 sheep farmers and vaccinated and de-wormed over 9 lakh sheep and built three modern fish handling centres and trained over 1,000 fishing crews.

Metro Group also offers the opportunity for suppliers to work with Metro companies worldwide through its local operations.

The group already has a company, Metro Group Buying, established in Delhi, which exported goods worth around $50 million in 2006.