Date:16/04/2004 URL: http://www.thehindubusinessline.com/2004/04/16/stories/2004041602000600.htm

Back Metro Cash & Carry to focus on Bangalore

Our Bureau

Bangalore , April 15

METRO Cash & Carry is not in a hurry to expand its network, albeit its has plans to replicate its self-service wholesale business in other parts of the country .

The company will embark on its expansion plan only after it has consolidated its business in Bangalore, where it launched the first self-service wholesale business for small and medium sector seven months ago.

He did not give a timeframe for expansion, but indicated it would happen soon.

"We will be launching our facilities in other cities such as Chennai, Hyderabad, Mumbai and Delhi. But we address issues like efficiency of logistics and product quality and processes to provide a cost-effective and profitable solution to the large number of businesses seeking such a one-stop-facility for their retail business," said Mr Harsh Bahadur, Managing Director of Metro Cash &Carry India Pvt Ltd.

He said with agri-products and food items forming part of 20 per cent of its business, Metro was confident of achieving its projected turnover of Rs 200 to 250 crore.

Mr Bahadur told Business Line that for Bangalore with about 4.5 lakh small and medium sized businesses, Metro might need one more outlet to its existing two to service the needs of the customers. However, inadequate logistics support and regulatory issues have restricted its faster expansion plans.

To strengthen its relationship with the core demand customers, Metro held a `Chef Mario Festival' for professionals in the hotel, restaurant & catering business to highlight the need for updating themselves on the vast range of products available .

Over 30 well known suppliers to the hotels and restaurants industry including MTR, Tropicana, UBF food solutions participated in the event.

"We believe that we have successfully been able to demonstrate to our business customers our understanding of their needs and this has resulted in a better acceptability of our concept among our customers.

"A good example is The Oberoi Group of Hotels, which has started to buy pork, even for its Delhi operations, from us," he said.