Metro is looking at opening distribution centres in at least 12 cities each with a population of over one million.
Its immediate goal is to start centres in major cities like Kolkata, Delhi, Chennai, Mumbai, Chandigarh and Hyderabad, Metro India managing director Harsh Bahadur said.
Each of these centres will need an investment of Euro 15-18 million, he said. "There is a huge potential in India for our business and we are looking at a long term investment in the country. Our real estate team is presently working on acquiring land in all these cities. We will open distribution centres wherever we get the land in a suitable place," Bahadur told Business Standard.
Metro has already invested Rs 250 crore (Rs 2.5 billion) for setting up two distribution centres in Bangalore. Its third centre will be opened at Hyderabad, in November this year, where it is investing close to Rs 80 crore (Rs 800 million).
The company has also acquired land for opening a centre at Kolkata. In West Bengal, it plans to open at least five distribution centres for a combined investment of Rs 450-500 crore (Rs 4.5 to Rs 5 billion), he said.
"Our expansion in India depends on where and how quickly we get the land. It is very difficult to say where we will open our first distribution centre. It depends on the availability of land," he said.
Meanwhile, Metro has initiated various programmes to set up a large supply chain network in India. The establishment of the supply chain network is being done to coincide with its expansion in the country.
Its third distribution centre will commence operations at Hyderabad in November this year. Next year it will open its fourth centre in Kolkata, a Metro spokesman said.
In an effort to procure quality meat and fish from the farmers and fishermen, the retail major has been conducting training and awareness programmes across the southern states. It has already covered Karnataka and Tamil Nadu and is in the process of training fishermen in Andhra Pradesh.
Thus far, 18,000 sheep farmers in Karnataka have been trained and another 22,000 will be trained by October 2007 in Tamil Nadu. Metro presently procures fish from 23 landing centres in the South.
"We are in talks with the department of fisheries of Andhra Pradesh for the relevant approvals. We will conduct awareness programme in five major fishing harbours of the state," he said.
Metro Cash & Carry has till now established modern fish auction centres in Mangalore in Karnataka, Pazahar and Keechankupam in Tamil Nadu.
Metro works closely with its suppliers around the world to eliminate supply chain wastage and improve food safety and hygiene thereby positively impacting price and quality of products sold at Metro, he said.
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