The Hindu Business Line : Metro Cash & Carry scouting for locations in Punjab

New Delhi, Dec. 3 Metro Cash & Carry India, the domestic arm of the German-based global wholesale retailer, said that it is scouting for several places in Punjab to open its wholesale cash-&-carry outlets.

Speaking on the sidelines of the ongoing India Economic Summit, Mr James Scott, Regional Operating Officer Asia, Member of the Management Board, Metro Cash & Carry International said, “We are scouting for a number of locations in Punjab, such as important and growing cities like Ludhiana, Amritsar and Chandigarh, to make a foray into the State.”

Mr Scott said that Metro was actively looking at Punjab not only to foray into the populous and prosperous State, but also for the easy availability of fresh produce. “We are looking at Punjab as a major sourcing hub for our centres pan India,” he added.

New outlets

The company currently has two cash-&-carry centres in Bangalore and three in Hyderabad. Metro is also in the process of opening its outlets in Mumbai and Kolkata by early 2008.

“We should be opening our Mumbai outlet by March and our Kolkata centre by April 2008,” said Mr Scott. On whether Metro will be allowed to sell wholesale fresh fruits and vegetables from its outlet in Kolkata, Mr Scott said, “The Government has given us a commitment that we can sell fresh produce in the city.”

By the law

Though the Agricultural Produce Marketing Act (APMC) has been abolished in Kolkata, the new law is yet to be put in place.

The APMC Act in different States had become a stumbling block for hypermarkets and private wholesalers seeking to scale-up operations. Private companies, hypermarkets and wholesalers, who wanted to source bulk quantities of food and grocery, were required to work through an intermediary in APMC markets, and could not deal with the farmer directly.

Direct marketing centres

With amendments coming into effect in States such as Karnataka and Uttar Pradesh, it permitted private companies and co-operative sector units to establish direct marketing centres for farm produce and to develop supporting services for farmers.

The Metro Group also has a sourcing company based in Delhi, Metro Group Buying, which does its export-based sourcing. The company exported goods worth around $50 million in 2006.