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A Metro Cash & Carry outlet in Kolkata (file photo).

Our Bureau

Kolkata, Sept 25 The German Consul-General in eastern India, Mr Gunter Wehrmann, on Thursday warned that German companies would cease to invest in West Bengal if Metro Cash & Carry is compelled to shut down its wholesale outlet in Kolkata.

German businesses, according to Mr Wehrmann, were closely watching the developments in Singur and the fate of Metro Cash & Carry in the city. “The closure of Metro Cash & Carry will sound the death knell for German investments in West Bengal. Metro is a household name in Germany and if they are unable to set up a store here, then other companies will also follow suit and prefer going elsewhere,” Mr Wehrmann said.

He was briefing newspersons after Metro Cash & Carry officials met with West Bengal Chief Minister, Mr Buddhadeb Bhattacharjee, and Minister In-charge of Agriculture, Mr Naren De, at the Writers’ Buildings on Wednesday.

Mr Martin Dlouhy, Managing Director, Metro Cash & Carry, India, said the meeting with government authorities was “promising and encouraging”. “Both the leaders requested us to wait for the decision of the Government on the re-issuance of Agriculture Produce Marketing Committee (APMC) licence till Monday, September 29, 2008 and we have agreed to honour the request,” he said, adding that there could be a delay in commencement of operations due to non-issuance of the APMC licence.

The company would review the situation on September 29, he said. “During the meeting, we informed the Government that the wholesale centre in Kolkata cannot be set up in the absence of the APMC licence. In case we do not get the licence we will be forced to look at other possible options,” Mr Dlouhy pointed out.

During the meeting, company officials once again clarified their business model to the government authorities. “We clarified that we will only be present in the wholesale segment and will sell our products to registered customers. We also explained the entire process of registration,” he said.

The company has so far invested Rs 140 crore in the project and recruited and trained 350 people in Kolkata, he said.

Mr Henry Birr, Vice President, International Affairs of Metro Group said, “Metro Cash & Carry had planned to invest $120 million in West Bengal for setting up four cash-and-carry wholesale centres in Kolkata alone. This investment promise was given under an agreed precondition to provide the desired benefits to farmers, producers and small traders.”

More Stories on : Retailing | West Bengal

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