Steffen Greubel, global chief executive officer of Metro AG, hinted that the company might soon be considering an exit from India. This is the first time Greubel suggested the possibility of Metro AG leaving the country, The Economic times reported.
After French Carrefour, Metro would be the second big international wholesale retailer to leave Indian market
Steffen Greubel, global chief executive officer of Metro AG, hinted that the company might soon be considering an exit from India. This is the first time Greubel suggested the possibility of Metro AG leaving the country, The Economic times reported.
"We are very advanced in the process regarding India and are at a certain maturity level in the process. It's too early to share any information, but we have discussed it greatly," The Economic Times quoted Greubel telling analysts when questioned about possible withdrawal from India.
After French Carrefour, Germany’s Metro AG would be the second big international wholesale retailer to leave Indian market. After experiencing four years of sales difficulties, the French retailer closed its India operation in 2014. However, as per the report, no public statement has been made by Metro AG regarding its plan to leave India.
The industry officials stated that due to increased competition, a strict regulatory environment, and the absence of an equal playing field between domestic and foreign retail companies, the company made a choice to put its business in India up for sale.
Experts reportedly stated that due to the challenging European and global economic environment, regulatory constraints in India, strong competition from domestic Indian organisations, and low margins in the B2B business in India, Metro may have chosen to concentrate on expanding its core markets in Europe.
Last month, ET had reported that Mukesh Ambani-backed Reliance Industries had agreed in principle to buy Metro AG's cash-and-carry wholesale India business for Rs 4,000-4,500 crore.