The Indian subsidiary of German organised wholesale giant, Metro Cash & Carry looks to increase its stores from the existing 24 to 50 by the year 2020, for which the company may invest around ₹1,500 crore over the next three years. A standard store requires investment of ₹60 crore each.

Opening its second store in Gujarat at Ahmedabad, after Surat, Metro will cover other smaller cities in the State with an objective to reach out to kirana stores. Metro had opened its first store in Gujarat at Surat in 2016. The company plans to fund its expansions through internal accruals and partly through debt.

“Our focus will be on kirana stores as we plan to become their warehouse or godown. This is a wholesale format outlet, where only registered traders or professionals can make bulk purchases,” said Arvind Mediratta, MD & CEO, Metro Cash & Carry India, during the launch of the store.

The company offers membership cards to traders or registered professional having licences from any of the 40-odd categories listed by the government. The Ahmedabad Metro store is spread on an area of 55,000 sq feet, and employs over 350 people including sales team.

The company has over 11 lakh business customers, of which about 50 per cent are kirana store owners besides mid-sized hotels, restaurants, caterers and self-employed professionals.

The store has over 7,000 products in different categories, and sources farm produce such as vegetables, fruits and grains directly from the farmers in nearby collection centers.

The business customers also get services of commodity experts, loading facilities, doorstep delivery services through third party transporters and a loyalty programme.

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