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breaking news German retailer Metro Ag Scouts for Indian business partner, to sell stake


German retailer Metro AG is looking for a partner to sell its stake in its Indian subsidiary Metro Cash & Carry India, according to a source.

The parent company, having reviewed the progress of its Indian unit, is now seeking strategic external alliances for profitable business growth, the industry source said.

“It is at the discussion stage that has taken place,” he said, adding that discussions with bankers have taken place on this.

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According to a news report, several major companies operating in the business-to-business (B2B) and business-to-consumer (B2C) online and offline retail space have been approached, including Amazon, Thailand’s Charoen Pokphand (CP) Group, Reliance Retail, Avenue Supermarts (D-Mart), Tata Group, Lulu Group and the PE Samara Capital fund.

The Indian company needs more investment to grow and add more stores in its network and achieve scale, he added.

When contacted, a Metro AG spokesperson said the company was reviewing strategic options. “Metro India is a growing business in a market with huge wholesale potential.

We are exploring strategic options with potential partners to enhance Metro’s existing wholesale capabilities and accelerate business development in India. Please understand that we will not comment on rumors or speculation in the media, said Gerd Koslowski, senior vice president of corporate communications for Metro AG.

Metro AG operates in 34 countries and generated revenue of €25.6 billion in fiscal year 2019-20. It entered the Indian market in 2003. Metro Cash & Carry India currently operates 31 stores in the country under the Metro Wholesale brand.

It operates six stores in Bangalore, four in Hyderabad, two in Mumbai and Delhi, and one in Kolkata, Jaipur, Jalandhar, Zirakpur, Amritsar, Ahmedabad, Surat, Indore, Lucknow, Meerut, Nasik, Ghaziabad, Tumakuru, Vijayawada, Visakhapatnam , Guntur and Hubballi.

Asked about the development, the Metro India spokesperson said the Indian business has been doing very well and has been profitable since 2018.

“Metro India’s business has been doing very well and has been profitable since 2018; now four years in a row. We saw a strong 57% increase in our EBITDA for FY21 compared to FY20. Our business e-commerce business in FY21 grew by 5.7%x year-on-year and we successfully opened three new stores in India in the past 9 months,” he said. added.


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