![]() By 2025, the Indian retail market will increase to $1,297 billion in value, of which organised online retailers would be just 8 percent, as per estimates by consulting firm Redseer. This has been the 4th pillar of the company that traditionally has been focussing on three broad customer buckets-traders, HORECA (hotels, restaurants and cafes) and companies and offices.Īn estimated 13 million kiranas in India present a massive untapped opportunity as most of them look to upgrade and get a modern makeover from deep pocket players like Reliance, Amazon and Udaan. From digitising, remodelling and modernising kiranas to helping them with efficient utilisation of inventory, planogram, data analytics, easy credit and targeted promotions, the wholesale B2B retailer, under Arvind Mediratta, who joined Metro in February 2016, has been tapping kiranas across the country to deepen and widen its omni-channel play. Since 2018, to compete with local competition, Metro has been fine-tuning its strategy to also do business with local kirana (mom and pop) retailers to widen its reach. “With no FDI restrictions, even PE players that have a retail exposure will be keen to explore this (Metro buyout) opportunity, but this is a dog-eat-dog market,” said a retail CEO on condition of anonymity. In financial year 2019-20, Metro generated sales of 25.6 billion euros. The company’s wholesale and food retail is spread across 34 countries. It has also withdrawn from Russia following the war with Ukraine. Metro is focusing on making profits from its global operations and market leadership in food and grocery wholesale. But the parent is unwilling to pump in up to $300 million (Rs 2,310 crore) in the short term required to fight competitors such as Reliance and Udaan, said executives aware of the ongoing developments. The retailer clocked $898 million in revenues in FY21 (Oct-Sept) and is likely to close the current fiscal with a billion-dollar-plus revenues with an EBITDA growth of 30-40%. Depending on the final negotiations, Metro may choose to retain a small stake for future upside but will be relinquishing control, added a company executive. Sources in the know say Metro’s leadership is expecting a valuation of $1.5-1.75 billion for the India business. Information memorandums are being sent and non-disclosure agreements (NDAs) are being signed. The discussions with potential buyers are still preliminary in nature. Metro is the only profitable player in India’s B2B place which is seeing fierce competition with several large players who are losing hundreds of millions of dollars every year to gain market share.” previous year and we successfully opened three new stores in India. Our eCom business in FY 21 grew by 5.7X vs. “We will not further comment on rumours and speculation.”Īn India spokesperson further added, “ We are bullish on our India business and continue to expand our store and eCommerce footprint. This is a general approach and normal business applied to all countries, including India,” said Gerd Koslowski, the company’s global director of corporate communications. “At Metro, we regularly assess our international portfolio, such as our market position in the respective country, the life cycle of our operations, the growth potential of our business. ![]() ![]() “Metro wants to grow profitably which is not possible in the near term. Most competitors are operating at negative 20-25% EBITDA,” said an industry veteran asking not to be named. “Selling below cost and free delivery of goods are the issues. ![]()
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