News: Metro AG to expand India ops
(FE 24/04/2006) Hannover - German trading major Metro AG — which has two Metro Cash & Carry wholesale outlets in Karnataka — has lined up Euro 300 million investment in India with plans to open new outlets in Hyderabad, Chennai and Kolkata. Metro chief executive Hans-Joachim Korber told FE the new stores may be opened in the next few months to scale up the company’s operations in India.
Metro AG’s plans to pump in more funds into India comes on the back of an announcement by commerce and industry minister Kamal Nath who said the government planned to liberalise the investment norms in the retail sector in the next 45 days. He was speaking to mediapersons on the opening day of the Hanover fair.
“Our ministry is working out a proposal in this regard (opening the retail further),” he said. At present, India allows up to 51% FDI in single brand retail and has been under pressure from foreign investors to broadbase the investment norms.
The opening day of the fair, where India is a partner country, also saw as many as four memoranda of understanding (including a $1-billion deal between Vijay Mallya’s Kingfisher Airlines and Airbus Industrie) being signed between Indian and German companies.
In the largest of the deals, Kingfisher plans to buy five A 340-500 long-haul aircraft for non-stop service between Mumbai and two US cities, New York and San Francisco.
The Abhay Firodia-promoted Force Motors entered into a 70:30 JV with Munich-based Man Nutzfahrzeuge to set up a Euro 100 million facility in MP to produce buses, chassis and coaches for domestic as well as Asian and African markets. He said another Euro 300 million would be invested after the initial expansion.
The third MoU was signed between Indian Railways and Deutsche Bahn (German Railways) for technical cooperation and development of equipment. The fourth MoU was between ICMR and Helmholtz Association for R&D collaboration in new generation technologies.
Metro AG’s plans to pump in more funds into India comes on the back of an announcement by commerce and industry minister Kamal Nath who said the government planned to liberalise the investment norms in the retail sector in the next 45 days. He was speaking to mediapersons on the opening day of the Hanover fair.
“Our ministry is working out a proposal in this regard (opening the retail further),” he said. At present, India allows up to 51% FDI in single brand retail and has been under pressure from foreign investors to broadbase the investment norms.
The opening day of the fair, where India is a partner country, also saw as many as four memoranda of understanding (including a $1-billion deal between Vijay Mallya’s Kingfisher Airlines and Airbus Industrie) being signed between Indian and German companies.
In the largest of the deals, Kingfisher plans to buy five A 340-500 long-haul aircraft for non-stop service between Mumbai and two US cities, New York and San Francisco.
The Abhay Firodia-promoted Force Motors entered into a 70:30 JV with Munich-based Man Nutzfahrzeuge to set up a Euro 100 million facility in MP to produce buses, chassis and coaches for domestic as well as Asian and African markets. He said another Euro 300 million would be invested after the initial expansion.
The third MoU was signed between Indian Railways and Deutsche Bahn (German Railways) for technical cooperation and development of equipment. The fourth MoU was between ICMR and Helmholtz Association for R&D collaboration in new generation technologies.
posted by InCar Group Press Room at 23:51
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