New Delhi India’s largest business-to-business startup Udaan has shown interest in buying Metro AG’s India Wholesale unit.
Metro, which has 31 wholesale distribution centers in India, expects to sell the Indian unit by the end of September, the person said.
Bidders plan to take advantage of Metro’s wholesale stores that cater to small businesses, neighborhood stores and restaurants to help expand their reach and access products in India’s top cities. The winning bidder may also use the Store to fulfill the online order.
Metro opened its first store in India in 2003. In 2020-21, the company saw 6,738.3 crore in sales.
A Metro AG spokesperson said the company regularly assesses its global portfolio, such as its market position in the relevant country, its life cycle of operations and the growth potential of the business.
“It is a general approach, and business as usual applies to all countries, including India. We do not comment on rumors and speculation,” said the spokesman, based in Düsseldorf, Germany.
A spokesperson for CP Group, whose retail arm Siam Macro PCL operates wholesale cash and carry stores in India and other markets, declined to comment.
A Reliance Industries spokesperson said: “As a policy, we do not comment on media speculation and rumours. Our company evaluates various opportunities on an ongoing basis.”
Reliance Industries is the country’s largest offline retailer, operating retail stores in the grocery, fashion, footwear and electronics segments.
Emailed queries to the spokesperson of the flight did not elicit any response. The business-to-business e-commerce platform operates across categories including lifestyle, electronics, home & kitchen, staples, fruits & vegetables, FMCG, pharma, toys and general merchandise. Udaan, operated by Hiveloop Technology Pvt, was founded by Sujit Kumar, Amod Malviya and Vaibhav Gupta.
“Each company has different metrics on how they value and bid on the metro business in India,” the person cited above said on condition of anonymity.
However, the final decision on who wins the bid to control the company’s operations here will be taken in Germany. Whether Metro will retain a minority stake in operations will be decided based on whether the new owner needs Metro’s expertise to operate the business.
Mint had earlier reported that Metro is prioritizing its search for local partners to buy a majority stake in its India wholesale business.
Investment banks Goldman Sachs and JP Morgan have been tasked with finding a buyer or a partner for the company’s entire business in the country who can hold a majority stake. A 145-page information memo was circulated among potential buyers.
The person said Metro will consider the buyer’s ability to obtain regulatory approvals and meet financial requirements and take care of existing employees.
Competition in India’s retail industry has intensified over the years, with local conglomerates and foreign retailers investing in the market.
Those familiar with the retailer’s plans in India said the company’s current operations are “very small” given the size and scope of the Indian retail market. The company has presented a plan to expand its business in India, which includes scaling up of multiple operations. Hundreds of stores for potential buyers.
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