Metro to invest $62.3m in India retail operations
German retailer Metro is planning to invest around INR4bn ($62.3m) to expand its operations in India.
The investment will be used to open more wholesale stores in the country, reported The Economic Times. Metro plans to increase the number of its stores from the current 16 to 50 by 2020.
The amount will be raised from Metro's parent company through equity infusion.
This comes as part of Metro's strategy to make India one of its focus expansion countries alongside Russia, China and Turkey.
Metro in its 2014 annual report said: "In India, Metro Cash & Carry has little international competition due to the existing restrictions on foreign retailing activities.
"In spite of the easing of the ban on direct investments in India made by international retail companies, we project that competition from modern grocery retailing formats will remain relatively weak there in the near future."
Despite having operations in the country since 2003, Metro could not beat Walmart and Reliance Retail in terms of store count.
Elsewhere, Metro is contemplating acquisition of some of Target stores that are being sold in Canada due to tough competition from latter's fellow American rivals such as Walmart and Costco.
Image: Metro operates a chain of wholesale/cash and carry stores. Photo: courtesy of Lite / Wikipedia.