The METRO Group in India

The METRO Group was quick to recognize the potential of the Indian market. It was the first international retailing company to set up operations on the subcontinent – and is now making a significant contribution to the development and expansion of the country’s retail infrastructure. In addition, the company supports the domestic economy: almost all the goods it sells are bought from local suppliers.


Obstacles for investors

The METRO Group, Wal-Mart, Tesco, Carrefour – a large number of international retail companies are investing in India’s growth potential. The country’s laws, however, still place tight restrictions on the activities of foreign companies: so far, investors are only permitted to operate single-brand stores, via franchise agreements, within the framework of a minority holding or as a wholesaler in India. The sales brand METRO Cash & Carry, with its self-service wholesale stores, is an example of a company that profits from these regulations. A further legal obstacle: in states like Karnataka, the Agricultural Produce Marketing Act (APMA) grants small enterprises the exclusive right to sell fruit and vegetables – a profitable business, considering that the majority of Indians are vegetarians.


Successive expansion

The METRO Group is a prime mover, having already done pioneering groundwork in a number of countries. By entering the Indian market as well, the company stayed a step ahead of its competitors. As early as the mid-1990s, the METRO Group began analyzing the structures and special aspects of the Indian market. In fall of 2003, the time was ripe: the first two METRO Cash & Carry wholesale stores opened their doors in Bengaluru. Known as India’s Silicon Valley, the city formerly named Bangalore is home to numerous domestic and foreign IT companies and now has a population of over six million.

>next