Metro AG, the world’s fourth-largest retailer by revenue, is bidding adieu to India. The company is at a very advanced level of discussions on its India business and is looking at an exit from the country soon.
Steffen Greubel, Global Chief Executive Officer, Metro AG said it is too early to reveal vital details but Metro has advanced in the process with regard to its India operations and have arrived at a certain maturity level. “We have discussed it greatly, and we are very deep in the sale process in India,” Greubel told analysts while announcing annual earnings.
According to the company’s annual report, the Indian business of German wholesale retailer rose by 21 per cent to $982 million during the year ended September. Reliance Industries has reached an in principle agreement to purchase Metro AG’s cash-and-carry wholesale business in India for ₹4,000-4,500 crore.
Reliance Retail runs over 2,400 retail stores across formats, while Metro operates 31 wholesale stores with seven of them on company-owned land in prime locations.
If the exit happens, Metro would be the second big international wholesaler retailer after French retailer Carrefour that concluded India operations in 2014 after struggling with sales for four years.