New Delhi, May 20: German retailer Metro AG is planning to exit the Indian market by selling its cash-and-carry operations for $1.5-1.75 billion, according to a news report.
The Economic Times reported that companies such as Amazon, Thailand’s Charoen Pokphand (CP) Group, Reliance Retail, Avenue Supermarts, Tata Group, Lulu Group, and PE fund Samara Capital have been approached to buy the MNC’s cash-and-carry operations in the country.
Metro AG has been present in India since 2003 and has been operating a chain of 31 cash-and-carry stores.
According to the report, JP Morgan and Goldman Sachs have been appointed to find a suitable buyer for Metro AG’s business in India.
Pressures to sell below cost, free delivery of goods and negative EBITDA in the industry, were the reasons according to an industry veteran, quoted in the report.
The discussions with potential buyers are said to be in the initial phase.
Metro AG revenues in FY21 (Oct-Sept) stood at $898 million and it is likely to clock more than $1 billion in revenues with an EBITDA growth of 30-40% as compared to 50% in the last fiscal.
According to Metro’s India website its, “core customers include small retailers and kirana stores, hotels, restaurants and caterers, corporates, SMEs, all types of offices, companies and institutions, as well as self-employed professionals”.