The Hindu Business Line : ‘More benefits for small players, not a threat’

Chennai/Hyderabad May 27 Reacting to the ICRIER report, Mr Martin Dlouhy, Managing Director of Metro Cash & Carry India, said: “Governments of several fast developing States, including the Indian Government, have recognised the need for improved and efficient supply chains and the benefits that they bring to small retailers on the one hand and producers and manufacturers on the other. Such Governments have seen the benefits that cash & carry wholesale brings into the local trading environment and have allowed its entry to protect the interest of small unorganised retailers as well as small and midsized producers and manufacturers.

The ICRIER report validates the benefits accrued by the smaller players through cash & carry wholesale in India. We are fully convinced that Metro’s Cash & Carry concept will bring benefits to the smaller players of the Indian market as it has in 28 other countries around the world, including China – a case in point, mentioned in the study.”

According to Mr Kishore Biyani of the Future Group, kiranas and organised retail have always co-existed. Kiranas cater to daily and weekly needs while we have a different set of customers who are into destination shopping needs.

“Although we have a format (KB’s Fair Price) which is pitted against kiranas, there are limited stock keeping units in that format. An official from Trent Ltd, said, “We have never been competing against kiranas instead we still have a lot to learn from them in terms of logistics and supply chain management.”

Mr Mohit Khattar, President, Marketing of discount retail chain Subhiksha, says that organised retail, even if it grows at the same rate for the next ten years, will still be a fraction of the overall market. He says that operations by players such as Subhiksha have actually helped the farmer by cutting out middlemen, by ensuring correct weightage of vegetables and paying farmers promptly.

“The report has vindicated our stand that organised retailing would not be a threat to the small traders. We don’t say that there won’t be any impact at all,” Mr Anjaneyulu Kakkera, Chairman of Vah Magna, said.

“The report has reiterated whatever we have been arguing all these days. But when a big store is opened, there will be impact on the shops in the neighbourhood for the initial, say, six months. But after that, when everything settles down, it will be business as usual,” he said.

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