MIRA INFORM REPORT
|
Report Date : |
22.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
METRO CASH AND CARRY INDIA PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
#26/3, Industrial Suburbsward #9, A Block, Subramanyanagar, Bangalore-
560055,
Karnataka |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.12.2011 |
|
|
|
|
Date of
Incorporation : |
18.01.2001 |
|
|
|
|
Com. Reg. No.: |
08-028483 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 8206.310 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U51909KA2001PTC028483 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
BLRM05339F |
|
|
|
|
PAN No.: [Permanent Account No.] |
AACCM4684P |
|
|
|
|
Legal Form : |
Private Limited Liability Company |
|
|
|
|
Line of Business
: |
Trader and
Wholesaler of Food Products and Non-Food Products. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (45) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 17010000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a subsidiary of Metro Cash and Carry International GmbH. It
is an established company having satisfactory track. Even though the company
has achieved better sales turnover during 2011, it has incurred loss. Accumulated losses recorded by the company seem to be increasing over
years. However, the subject company continues to derive its strong financial
and operational support from its ultimate parent, Metro AG. Metro AG is the world’s largest cash and carry operator and it
provides operational, management and financial support to the subject. Trade relations are reported as decent. Business is active. Payments
are reported to be slow but correct. In view of strong holding, the company can be considered for business dealings
at usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long term loan : (CRISIL) A |
|
Rating Explanation |
Having adequate degree of safety regarding timely
servicing of financial obligations it carry low credit risk. |
|
Date |
September 2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office : |
#26/3, Industrial Suburbsward #9, A Block, Subramanyanagar, Bangalore-
560055,
Karnataka, India |
|
Tel. No.: |
91-80-22192000/
22192245 / 25353827/ 25092237/ 22192307 / 22192308 |
|
Fax No.: |
91-80-22192200/
25092236/ 22192199 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Branch Office : |
Kanakpura Road,
Bangalore – 560062, Karnataka, India Also Located at : v v Kolkata v v Mumbai |
DIRECTORS
AS ON 29.06.2012
|
Name : |
Mr. Rajeev Bakshi |
|
Designation : |
Managing director |
|
Address : |
Banghi Residency, 12th Floor, TTA Palki Lane, Prabhadevi,
Mumbai-400025, Maharashtra, India |
|
Date of Birth/Age : |
07.05.1957 |
|
Date of Appointment : |
23.08.2010 |
|
PAN No.: |
AGAPB6353R |
|
DIN No.: |
00044621 |
|
|
|
|
Name : |
Mr. Alec John Booth |
|
Designation : |
Whole-time director |
|
Address : |
170, 1st Block, 2nd Mani, RMV 2nd
Stage, Dollars Colony, Bangalore-560094, Karnataka, India |
|
Date of Birth/Age : |
30.09.1964 |
|
Date of Appointment : |
09.06.2008 |
|
PAN No.: |
APIPB0137J |
|
DIN No.: |
02115722 |
|
|
|
|
Name : |
Mr. Ajay Singh |
|
Designation : |
Whole-time director |
|
Address : |
11/2, ITC Laburnum, Sushani Lok, Gurgaon-122001, Haryana, India |
|
Date of Birth/Age : |
20.06.1968 |
|
Date of Appointment : |
06.04.2009 |
|
PAN No.: |
BOMPS3062K |
|
DIN No.: |
02413886 |
|
|
|
|
Name : |
Mr. Bouzeneth Benaouda |
|
Designation : |
Whole-time director |
|
Address : |
156A, 8th B Main, Sadashivanagar, RMV Extension,
Bangalore-560080, Karnataka, India |
|
Date of Birth/Age : |
26.01.1969 |
|
Date of Appointment : |
23.06.2011 |
|
PAN No.: |
APJPB8371H |
|
DIN No.: |
03498637 |
|
|
|
|
Name : |
Mr. Mukesh Dugar |
|
Designation : |
Director |
|
Address : |
A3/ 402, White House, Apartment 6, Main 15 Cross, RT Nagar,
Bangalore-560032, Karnataka, India |
|
Date of Birth/Age : |
28.04.1968 |
|
Date of Appointment : |
29.06.2012 |
|
DIN No.: |
03542956 |
|
|
|
|
Name : |
Mr. Venkatesh Lakshminarayanan Tarakkad |
|
Designation : |
Director |
|
Address : |
CE/ DAR A902, Godrej Wood, Sman Estate, Hebbal Circle, Bellary Road,
Bangalore-560024, Karnataka, India |
|
Date of Birth/Age : |
09.01.1972 |
|
Date of Appointment : |
29.06.2012 |
|
DIN No.: |
03617181 |
|
|
|
|
Name : |
Mr. Alok Mehta Kandarp |
|
Designation : |
Director |
|
Address : |
VI/LLA, 113 Purva Parkri, DGE Off Outer Ring Road, Mahadevpura Post,
Bangalore-560048, Karnataka, India |
|
Date of Birth/Age : |
18.09.1970 |
|
Date of Appointment : |
29.06.2012 |
|
PAN No.: |
AGXPM5115B |
|
DIN No.: |
05102251 |
KEY EXECUTIVES
|
Name : |
Mr. Rahul Jha |
|
Designation : |
Secretary |
|
Address : |
B: 03, RNS Shanti Niwas, Tumkur Road, Bangalore-560022, Karnataka, India |
|
Date of Appointment : |
21.11.2011 |
|
PAN No.: |
AGHPJ8543N |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 29.06.2012
|
Names of Shareholders |
|
No. of Shares |
|
Metro Cash and Carry International GmbH, Germany |
|
895631384 |
|
Metro International Beteiligungs GmbH, Germany |
|
1 |
|
Total |
|
895631385 |
AS ON 07.08.2012
|
Names of Allottees |
|
No. of Shares |
|
Metro Cash and Carry International GmbH, Germany |
|
125000000 |
|
Total |
|
125000000 |
AS ON 29.06.2012
|
Equity Share Breakup |
|
Percentage of Holding |
|
Category |
|
|
|
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
|
100.00 |
|
Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Trader and
Wholesaler of Food Products and Non-Food Products. |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
|
|
|
|
Bankers : |
Ø
The Royal Bank of Scotland N.V., Netherlands Ø
B N P Paribas, France Ø
Credit Agricole Corporate and Investment Bank,
France Ø Citibank N.A.,
United States Ø Deutsche Bank,
Germany Ø HSBC Limited,
Hong Kong Ø Standard
Chartered Bank |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
BSR and
Associates Chartered
Accountants |
|
Address : |
Maruthi Info-Tech
Centre, 11-12/1, Inner Ring Road, Koramangala, Bangalore – 560 071,
Karnataka, India |
|
Income-tax
PAN of auditor or auditor's firm : |
AAIFB7355D |
|
|
|
|
Entities under
common control with whom transactions have taken place : |
Ø
MGB Metro Group Buying GmbH Ø
MGB Metro Group Buying International GmbH Ø
MGB Metro Group Buying HKLimited Ø
Metro Group Information Technology GmbH Ø
Makro Cash and Carry Belgium Ø
Metro Jin Jiang Cash and Carry Ø
Makro Cash and Carry Germany Ø
Makro Cash and Carry Polska S.A Ø
MGB Metro Group Buying Polska SP Z.o.o Ø
10.Metro Cash and Carry Japan Ø
Metro Cash and Carry d.o.o. (Croatia) Ø
Metro Accounting Centre for Excellence (Private)
Limited [U74900PN2011PTC138620] Ø RAW Real Estate
Asia Pte. Limited |
|
|
|
|
Holding Company: |
Metro Cash and Carry International GmbH |
|
|
|
|
Ultimate holding
Company: |
Metro AG |
|
|
|
|
Partnership firm in which control exists : |
Metro Cash and Carry Wines - Company holds 99.99% share |
|
|
|
|
Employees'
Benefit Plans where there is significant influence : |
MCC India Employees' Provident Fund Trust MCC India Employees' Superannuation Fund
Trust |
|
|
|
|
Related Parties: |
Ø MCCI Germany,
Germany Ø METRO Jin Jiang
Cash and Carry, China Ø METRO Cash and
Carry Vietnam Limited, Viet Nam |
CAPITAL STRUCTURE
AS ON 29.06.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1500000000 |
Equity Shares |
Rs.10/- each |
Rs. 15000.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1020631385 |
Equity Shares |
Rs.10/- each |
Rs. 10206.314 Millions |
|
|
|
|
|
AS ON 31.12.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1000000000 |
Equity Shares |
Rs.10/- each |
Rs. 10000.000 Millions |
|
|
|
|
|
Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
820631385 |
Equity Shares |
Rs.10/- each |
Rs. 8206.310 Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.12.2011 |
31.12.2010 |
31.12.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
8206.310 |
8206.310 |
8206.310 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
4720.510 |
4720.510 |
4720.510 |
|
|
4] (Accumulated Losses) |
(8672.460) |
(7783.920) |
(5979.990) |
|
|
NETWORTH |
4254.360 |
5142.900 |
6946.830 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
4824.290 |
2499.390 |
1581.350 |
|
|
TOTAL BORROWING |
4824.290 |
2499.390 |
1581.350 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
9078.650 |
7642.290 |
8528.180 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
8440.160 |
6561.340 |
6985.580 |
|
|
Capital work-in-progress |
264.550 |
1293.800 |
1630.510 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1083.070
|
554.490 |
462.200
|
|
|
Sundry Debtors |
80.500
|
48.150 |
12.650
|
|
|
Cash & Bank Balances |
1123.060
|
360.700 |
541.150
|
|
|
Other Current Assets |
0.000
|
0.000 |
0.000
|
|
|
Loans & Advances |
405.810
|
275.590 |
218.390
|
|
Total
Current Assets |
2692.440
|
1238.930 |
1234.390 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1535.420
|
916.890 |
899.390
|
|
|
Other Current Liabilities |
699.550
|
475.670 |
377.690
|
|
|
Provisions |
83.530
|
59.220 |
45.220
|
|
Total
Current Liabilities |
2318.500
|
1451.780 |
1322.300 |
|
|
Net Current Assets |
373.940
|
(212.850) |
(87.910) |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
9078.650 |
7642.290 |
8528.180 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.12.2011 |
31.12.2010 |
31.12.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
16248.150 |
12196.370 |
9771.720 |
|
|
|
Other Income |
527.990 |
28.900 |
59.030 |
|
|
|
TOTAL |
16776.140 |
12225.270 |
9830.750 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Office Expenses |
|
|
|
|
|
|
Administrative Expenses |
17427.020 |
13818.450 |
10711.160 |
|
|
|
Advertising Expenses |
|
|
|
|
|
|
TOTAL |
17427.020 |
13818.450 |
10711.160 |
|
|
|
|
|
|
|
|
|
PROFIT/
[LOSS] BEFORE TAX, DEPRECIATION AND AMORTISATION |
(650.880) |
(1593.180) |
(880.410) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
237.660 |
210.750 |
215.380 |
|
|
|
|
|
|
|
|
|
|
PROFIT / [LOSS]
BEFORE TAX |
(888.540) |
(1803.930) |
(1095.790) |
|
|
|
|
|
|
|
|
|
Less |
TAX |
0.000 |
0.000 |
2.450 |
|
|
|
|
|
|
|
|
|
|
PROFIT /
[LOSS] AFTER TAX |
(888.540) |
(1803.930) |
(1098.240) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Capital Discounts in respect of fixed assets
|
|
3.010 |
1.590 |
|
|
|
Trade Discounts |
|
|
1.600 |
|
|
|
Others |
|
|
0.710 |
|
|
TOTAL EARNINGS |
7.060 |
3.010 |
3.900 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
NA |
NA |
4.550 |
|
|
|
Traded Goods (other than goods in transit) |
NA |
NA |
25.010 |
|
|
TOTAL IMPORTS |
NA |
NA |
29.560 |
|
|
|
|
|
|
|
|
|
|
Earnings /
[LOSS] Per Share (Rs.) |
(1.08) |
(2.20) |
(1.34) |
|
KEY RATIOS
|
PARTICULARS |
|
31.12.2011 |
31.12.2010 |
31.12.2009 |
|
PAT / Total Income |
(%) |
(5.30)
|
(14.76) |
(11.17) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(5.47)
|
(14.79) |
(11.21) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(7.98)
|
(23.13) |
(13.33) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.21)
|
(0.35) |
(0.16) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
1.13
|
0.49 |
0.23 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.16
|
0.85 |
0.93 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
Yes |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
UNSECURED LOANS
|
Unsecured Loans |
31.12.2011 |
31.12.2010 |
|
|
(Rs. In Millions) |
|
|
Rupee term loans banks unsecured |
4824.290 |
2499.390 |
|
Total |
4824.290 |
2499.390 |
|
Footnotes (A) * Secured by
a corporate guarantee issued by Metro AG (the ultimate holding company) **
Includes external commercial borrowings from banks amounting to Rs 874.29 **
Amount repayable within 12 months Rs 874.29 Short term loans and advances
from banks and other loans and advances from banks are tagged as rupee term
loans from bank (B) * Secured by a corporate guarantee issued by Metro AG (the
ultimate holding company) ** Includes external commercial borrowings from
banks amounting to Rs 1399.39 ** Amount repayable within 12 months Rs 525.10
Short term loans and advances from bank adn Other loans and advances from
bank are tagged as rupee term loans from bank |
||
BACKGROUND
Subject was
incorporated on 18 January 2001 as a private limited company under the
Companies Act, 1956. The Company operates wholesale centers across various
cities in India under the “Metro” brand. As on 31 December 2011, the Company
has 9 distribution centers. The Company has its registered office in Bangalore.
FIXED ASSTES:
Ø Plant and
Machinery
Ø Computers
Ø Software
(Intangible Assets)
Ø Furniture and
fixtures
Ø Office equipment
Ø Vehicles
WEBSITE DETAILS
PRESS RELEASE
METRO CASH AND CARRY WANTS
TO GET BETTER GRIP IN PUNJAB
Chandigarh October 15, 2012
Metro Cash and Carry, a Germany-based business-to-business (B2B) wholesale player, plans to consolidate its operations in Punjab by adding two centres — Zirakpur near Chandigarh and Amritsar.
Talking to Business Standard, Vishal Sehgal, head, corporate relations, Metro Cash and Carry India, said that the Zirakpur store would be rolled out in October and the one in Amritsar would be operational by the end of the calender year.
This would mark the presence of the wholesale chain at four locations in Punjab. Ludhiana and Jallandhar already have operational outlets.
Sehgal said that farmers in Punjab were forthcoming as they got better and certain remuneration by saving commissions while selling their produce to the wholesale chains. They also save on transportation costs as the collection is done at their doorstep, he said.
"We have created synergies with about 500 farmers in Punjab and new centres are lined up in the state. We expect to double the number", he said.
"There is a stiff competition not amongst the wholesale chains but with the mandis. Their efficiency is very high and it is a challenge to beat the local mandis", he added.
He pointed out that the new entrants, the organised players, could get an edge over mandis only because the consumption basket has grown manifold and this space can be taken over by the B2B wholesale chains
.
Metro Cash and Carry, according to Sehgal, has close to 6,00,000 customers across India and 11 stores in different parts of the country. The total number of stores would go up to 13 by the year-end, after new stores commence operations in Punjab.
In order to take kirana>stores, restaurants, hotels and caterers into its fold, the company has been taking initiatives through awareness campaigns on hygiene and presentation.
KOLKATA'S SMALL
RETAILERS TOP BUYERS AT METRO CASH and CARRY
Kolkata October 9, 2012
Though a decade of Big Bazaar and Spencers hasn't affected small shopkeepers, most are wary of FDI in retail distorting the market
Rahul Agarwal (name changed), a grocery shopkeeper in South Kolkata, buys half his monthly inventory from German wholesale store Metro Cash and Carry. With a quarterly shopping bill of about Rs 2 lakh, he earns points that translate into cash benefits of Rs 18,000 every quarter. Not surprisingly, Agarwal loves to shop from the store’s tall fixtures, their topmost levels accessible only through lifts.
Early mornings are the busiest at the Metro Cash and Carry complex. Three-fourth of the morning trade is carried out at about 8 am, though the store’s portico remains abuzz with those loading daily provisions purchased by shopowners, traders and restaurant owners. These three categories pretty much exhaust Metro Cash and Carry’s list of customers.
There are some who come to the store to see its grandiose structure, spread over about 1,00,000 sq ft, as well as the variety of goods on offer. “A lot of my friends want to come with me to see the store. One person is allowed to come with a trader who holds a licence to shop here,” says Saihuddin Mondal, a shopowner from Sonarpur in the fringes of the city. Mondal’s shopping bill stands at Rs 1-3 lakh every quarter.
Rajesh Purohit, the store manager, quickly clarifies, “Those accompanying Mondal are also shopkeepers.”
Till recently, retail was out of bounds for companies like Metro Cash and Carry. Though the Union Cabinet has approved foreign direct investment in multi-brand retail, in Bengal, it may never see the light of day.
Agarwal and Mondal are happy; they represent the business segment West Bengal Chief Minister Mamata Banerjee is fighting to protect from what many say would be an onslaught of foreign companies. Opposing the Centre’s move, Banerjee had withdrawn support to the United Progressive Alliance government. The state government has also passed a resolution in the state assembly against domestic capital and foreign direct investment in retail.
Agarwal and Mondal have reasons to resist the entry of the likes of Walmart and Carrefour in India. Ever since domestic retailers such as Spencers, Big Bazaar and More opened outlets in and around Kolkata, Agarwal lost almost all his high-value customers. However, thanks to the ever-growing population, his profits haven’t declined. “People who bought groceries worth Rs 7,000-8,000 every month from our stores now prefer to buy from retail outlets. Our profits are stagnant, but volumes have increased, as the number of customers has risen,” he says.
Traditional wholesalers doing business in the Burrabazar and Posta Bazar areas for about 50 years see Metro Cash and Carry as a rival, albeit a weak one. Sitting in a cramped shop in a narrow alley at Posta Bazar, Banwari Lal, a wholesale spice trader, says his business hasn’t seen much change since Metro Cash and Carry started operations in the city. His profits have not risen much, nor have those seen a substantial fall. Though he lost some buyers in the south Kolkata region, where Metro Cash and Carry is located, this was compensated by the rise in customers from other parts of the city.
Pricing is the key to the co-existence of organised and unorganised wholesalers. While traditional markets like Posta and Burrabazar offer better prices, new-age wholesalers like Metro Cash and Carry offer convenience. “We get some food articles such as cardamom at Rs 600-650 a kg at Burrabazar, against Rs 850-900 here,” says Agarwal.
Another area in which traditional markets score over organised stores is credit facility. “Banks do not lend to shopkeepers. Most wholesalers in traditional markets offer credit facilities to old clients. This is a big advantage,” said Sushil Poddar, general secretary, Confederation of West Bengal Trade Association.
A decade of the presence of organised retailers like Big Bazaar and Spencers hasn’t affected the business of small shopkeepers, says Poddar. There are about 10,000 small shopkeepers in Kolkata and the three adjoining districts of Howrah, North and South 24 Parganas, with a daily turnover of about Rs 9 crore, according to Poddar’s estimates.
Yet, he remains steadfast in his opposition to foreign direct investment in retail.
“Organised domestic retailers are welcome. However, once foreign retailers come, their marketing methods will be so different that they will distort the market,” Poddar says.
It’s difficult to beat the fear of the unknown.
NO PLANS TO ENTER FRONT-END RETAIL IN INDIA: METRO GROUP
Gurgaon, Wed Nov 07
2012,
Germany's retail major Metro Group today said it will not enter the front-end segment in India, citing unhappiness over pace of development and the need to "remove barriers".
The group, which is currently present in the cash-and-carry wholesale segment, said India needs to accelerate decision making regarding economic policies.
"I am not happy with the pace of development here. India needs acceleration and speed in decision making," Metro Group Vice-President (International Affairs Asia Pacific) Tino Zeiske said at World Economic Forum on India here.
When asked if Metro Group will enter the front-end retail in India after the government relaxed the norms recently, he said: "We do not have any intention to come for the front end here. We are present in cash-and-carry and we will gradually expand this business".
Zeiske said slow pace of decision making by a country results in losing on many fronts.
"The government's role should be to remove or lower barriers for investments. The ground level local governments should be given more power from the Centre and that will help in taking faster decisions," Zeiske said.
He further said the government should focus more on education to create workforce that will help creating jobs by the private sector.
"People challenge in India is tremendous. Population of India is growing and we do not have anything to skill the young, and I don't see the government scaling up skill development," he said.
Asking India to learn from others, he said: "As we need more manufacturing, I really want the (Indian) government to wake up and look at other governments and organisations."
At present, Metro Group has been present in India for the last 10 years and at present operates 12 stores.
Zeiske said Metro Group's global revenue is equally contributed by both the front end retail and the cash-and-carry businesses.
Talking about the Indian government's recent decision to relax FDI norms in retail, he said it was a step in the right direction.
"It'll be stimulating to the overall growth of the retail in India," he added.
Metro Group has retail presence in 32 countries in Europe, Africa and Asia with over 2,200 outlets. It employs about 280,000 employees from 180 nations.
METRO TO INVEST RS
6500.000 MILLIONS IN INDIA, EYES 50 STORES
January 27, 2012
German wholesale giant Metro Group plans to invest over 100 million euros (about Rs 6500.000 Millions) in India as part of strategy to spread footprint across the country.
The cash and carry major that currently has nine stores at six locations in India in Bangalore, Hyderabad, Kolkata, Mumbai, Jalandhar and Ludhiana is eyeing to have 50 stores soon.
"We have a good presence in India already and we plan to have about 50 stores very soon. We plan to invest over 100 million euros. We have a big investment plan for India," Metro Group Member of Board Frans WH Muller told PTI after meeting Indian Commerce and Industry Minster Anand Sharma here.
Asked about future plans of the Metro in India, he said: "We want top have our stores in all parts of the country."
Metro has over 700 stores in 30 countries, and is one of the leading international leading self-service wholesale operators and had sales of 31 billion euros in 2010.
The firm started operations in India in 2003 with two distribution centres in Bangalore.
Today the company offers assortment of over 18,000 articles across food and non-food at wholesale prices to a variety of business customers such as hotels, restaurants, caterers, food and non-food traders, and institutional buyers.
METRO CASH AND CARRY
ENTERS ITS 10TH YEAR OF OPERATIONS IN INDIA
June
27, 2012
METRO Cash and Carry celebrates its 9th anniversary with a variety of consumer promotions and a range of new product offerings
Anniversary offers to be launched from June 28, 2012 until the end of July 2012
July 2012 marks the 9th anniversary of METRO Cash and Carry’s operations in India, and the self-service business-to-business wholesaler is all set to mark this milestone by celebrating the deep relationships it has built with its customers, suppliers and the community. METRO Cash and Carry India set up its first wholesale distribution centre in Bangalore in July 2003. As it enters its 10th year of Indian operations, the company is launching a host of promotional offers and discounts for customers at all its eleven wholesale centres across the country, in recognition of their support. This July a bumper bonanza awaits customers at METRO centres besides special in-store promotions and a whole new range of products. These commemorative offers will be launched on June 28, 2012 and will continue throughout July 2012.
"The last nine years have gathered us deep insights into what customers value. It is their trust in us that has helped us reach this milestone. We want to give them the best of our high quality assortment and customized services at the lowest possible prices,” said Mr. Rajeev Bakshi, Managing Director of METRO Cash and Carry India.
“Our customers have helped us succeed in refining our products and services to suit the most demanding markets. We want to thank them by offering them a special array of food and non-food products with unbeatable discounts, offers and rewards throughout the month of July,” Mr. Bakshi added.
Customers can expect to save big through a variety of anniversary schemes that the company plans to announce shortly. These schemes are aimed at giving customers great value for their purchases and will span every category of product, including dry and fresh food, groceries, furnishings, office equipment, media, electronics and appliances, among other products. Special privileges and value-added services will also be offered to customers in appreciation of their continued loyalty and support.
METRO Cash and Carry India’s unique business-to-business wholesale concept has proven to be a successful and reliable one-stop solution for business customers such as kiranas, small retailers, hotels, restaurants, catering businesses, offices and institutions. The company’s focus on customers has intensified in the wake of its robust expansion, and is evident in the large variety and niche range of products and customized value-added services offered in the wholesale centers. Sophisticated Quality Assurance mechanisms ensure that the products comply with the best international quality standards. METRO has also initiated various customer-connect and knowledge-sharing programs like Chef-o-logy, Super Trader and Bandhan for its various professional customer segments.
METRO works closely with local producers, suppliers, co-operatives and self-help groups to source products for each of its wholesale centres. The company’s highly successful Collection Centre initiative creates direct linkages with farmers in order to procure fresh fruits and vegetables and helps them to realize better value for their produce, reduce wastages, and get training and knowledge support. With its anniversary celebrations, METRO India re-iterates its commitment to its customers, suppliers and employees by adding significant value to each of them.
About METRO Cash and Carry
METRO Cash and Carry is represented in 30 countries with around 700
self-service wholesale centres. With more than 100,000 employees worldwide, the
company achieved sales of about € 31 billion in 2011. METRO Cash and Carry is a
sales division of the METRO GROUP.
METRO Cash and Carry entered the Indian market in 2003. The company currently operates eleven wholesale distribution centres including two each in Bangalore, Hyderabad and Mumbai, and one each in New Delhi, Kolkata, Ludhiana, Jalandhar and Jaipur.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources including
but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 54.28 |
|
|
1 |
Rs. 82.06 |
|
Euro |
1 |
Rs. 72.23 |
INFORMATION DETAILS
|
Report Prepared
by : |
BVA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTERS |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
45 |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.