Metro AG is Planning to Exit the Indian Market

According to a news report, German retailer Metro AG is planning to withdraw from the Indian market by selling its cash and carry business for $1.5-1.75 billion.

The Economic Times reported that companies including Amazon, Thailand’s Charoen Pokphand Group, Reliance Retail, Avenue Supermarts, Tata Group, Lulu Group, and PE fund Samara Capital have been approached to acquire the company’s cash and carry operations in the country.

The reports also mention that JP Morgan and Goldman Sachs are appointed to find the appropriate buyer for Metro AG’s business in India. It is believed that due to the pressures to sell below cost, free delivery of goods and negative EBITDA were the reason for the company to take such a decision. 

Metro AG's revenue for FY21 is expected to be $898 million and is expected to exceed $1 billion in revenues with EBITDA growth of 30-40% compared to 50% last financial year.

According to its Indian website, "Major customers include small retailers, Kirana stores, hotels, restaurants, catering companies, corporates, SMEs, offices of all kinds, companies, institutions and self-employed professionals."