Metro AG global chief executive officer Steffen Greubel said the company is at a \u201cvery advanced\u201d level of discussions on its India business, suggesting for the first time that it could be looking at an exit from the country soon.<\/p>\n\n\n\n
\u201cWe are very advanced in the process regarding India and are at a certain maturity level in the process. It\u2019s too early to share any information, but we have discussed it greatly,\u201d Greubel told analysts when asked if he is looking at a possible withdrawal from India and the status of talks. \u201cWe are very deep in the (sale) process in India,\u201d he said last week while announcing annual earnings.<\/p>\n\n\n\n
The German wholesaler grew its Indian business by 21% to $982 million during the year ended September, as per its latest annual report.<\/p>\n\n\n\n
Last month, ET reported that Reliance had agreed in principle to buy Metro AG\u2019s cash-and-carry wholesale India business for \u20b94,000-4,500 crore.<\/p>\n\n\n\n
Its unit Reliance Retail is already the biggest grocery retailer in the country with over 2,400 stores across formats while Metro operates 31 wholesale stores in India with seven of them on company owned land in prime locations. The company hasn\u2019t publicly stated that it\u2019s looking to leave India. Metro would be the second big international wholesaler retailer to exit India, if this happens. French retailer Carrefour wound up its India business in 2014 after struggling with sales for four years.<\/p>\n\n\n\n
Globally, Metro is the world\u2019s fourth-largest retailer by revenue. In India, it doesn\u2019t sell directly to consumers and is an organised wholesaler or cash-and-carry operator that sells merchandise to local kirana stores, hotels and catering firms.<\/p>\n\n\n\n
It decided to put the India business on the block as part of a global decision to exit the country due to heightened competition, a tougher regulatory environment and the lack of a level playing field between local and foreign retail companies, industry executives said.<\/p>\n\n\n\n
Experts said the difficult European and global economic environment, regulatory restrictions in India, tough competition from domestic Indian groups and thin margins in the B2B business in India may have led Metro to focus on growing its core markets in Europe.<\/p>\n\n\n\n