The company's MD & CEO speaks to Forbes India about its business model, and how the company became profitable 15 years after setting up shop in the country
Arvind Mediratta
Image: Nishant Ratnakar for Forbes India
The India operations of German wholesaler Metro Cash & Carry only turned profitable in September 2018, 15 years after it set up shop in the country. Arvind Mediratta (51), MD and CEO, Metro Cash & Carry India, spoke exclusively to Forbes India on how the company was losing money “hand over fist” and the steps that were taken to plug the financial leakages in the company.
Mediratta, a chemical engineering graduate from IIT-Delhi, took over the reins of Metro Cash & Carry India in 2016, after having setup Walmart’s wholesale operations in the country. With 27 Metro Cash & Carry India centres, Mediratta is now on a mission to save the ubiquitous kirana (neighbourhood retail) stores, a key customer of the wholesaler, accounting for 40 percent of its revenue.
“When our sales force of 800 people spoke to kirana store owners, we realised that they face an existential crisis. Hence, we decided to start sharing the techniques of modern retail with them,” says Mediratta. Edited excerpts from the interview:
Q. Business wise, what position was Metro Cash & Carry India in when you took over?
It was a strong brand, but only in the south. It was a good company, attracting good talent. But was it rated the best? The answer is no. In terms of sales, Metro was [the leading branded wholesaler], but in terms of perceptions, no. When I was running Walmart, it came up quickly and almost caught up with Metro [Metro’s first store opened in 2003, while Walmart opened shop in 2008]. The culture [in Metro Cash & Carry India] needed change—a performance-oriented culture with a strong customer focus. We had to consolidate our leadership position and focus on profitability.
(This story appears in the 15 March, 2019 issue of Forbes India. To visit our Archives, click here.)