The inside of a Metro Cash & Carry store in India

Come Puja, Calcutta will welcome a “unique” self-service wholesale distribution format in the shape of its first Metro Cash & Carry outlet on the Bypass, with the promise of “several more” centres to follow.

“Our homework shows Calcutta has over 250,000 kirana (neighbourhood) stores and that gives us the confidence to roll out a few more outlets in this city. Kirana stores constitute our core clientele, besides hotels, restaurants and caterers,” Erik Schmit, the director (development & expansion) of Metro Cash & Carry India, said on Tuesday.

The 100,000-sq ft centre, set up at a cost of Rs 120 crore, will be the fifth in India for the German major in cash-and-carry wholesale distribution, servicing only business consumers. It partners over 20 million professional customers globally.

While the recent beeline for star hotels and supermarkets is a key energiser, the group’s bullishness on Calcutta also stems from the “consumption-driven, sustainable growth”. The cash-and-carry chain could pump in close to Rs 500 crore in city ventures over the next few years.

Part of the Metro Group, which does supply channel management in 29 countries through 600-plus outlets, the maiden city hub, a “Junior Flat” format, will stock more than 18,000 items, from fish and meat to fruits and vegetable, groceries, cosmetics and detergents, beverages, office supplies and kitchen stuff.

“Ours is a B2B model and anyone with a valid trade licence can be a customer. Just like anywhere else, we will source nearly 95 per cent of our stocks in Calcutta, providing handholding support to hinterland farmers and small manufacturers,” promised Schmit.

Metro Cash & Carry is putting in place an elaborate supply chain, including a fish harvesting platform near the coast with ice flakes machines and cool trucks. The group hopes to cut down transit wastage of foodstuff from 30 per cent to less than five per cent through “efficient” supply chain management.

“While lower wastage and the ability to directly market their produce to us will ensure fairer price for local farmers, we will also help them improve their crop yield as well,” said Schmit.

Metro will train the owners of the city’s neighbourhood stores to improve their visual merchandising, promotions, product-mix and accounting skills.

Metro Cash & Carry India currently has two outlets in Bangalore, in Hyderabad and Mumbai.