Thailand’s Siam Makro looks to set up 100% cash-and-carry operations here

NEW DELHI: Thailand’s Siam Makro is becoming the latest foreign retailer after Metro, Walmart and the UK's Booker to start a 100% cash-and-carry operation in India, two people familiar with the development said.

According to a person familiar with Makro’s plans said the Bangkok-based retailer is looking to start its operations from north India in the coming years. He said Makro is putting together a leadership team in India and has hired former Metro Cashand-Carry India CFO Venkatesh Tarakkad as the CFO and project lead.

Siam Makro did not respond to an emailed questionnaire sent by ETon Tuesday.




Cash-and-carry is currently a Rs 6,800-crore market in India, and has been growing at an annual rate of 13%, faster than modern trade but on alower base. Analysts said organised wholesale business is a huge growth area in India as the country is currently serviced by unorganised wholesale markets and distributors.

Currently, four operators including Walmart Stores Inc., Metro Cash and Carry, Booker and Reliance Retail collectively operate 92 wholesale clubs in India that account for merely 2.6% of all fast moving consumer goods ( FMCG) products sold in India, according to a Nielsen report last year.

Walmart operates 21 of its Best Priced branded stores while Metro is running 23 cash-and-carry stores here. Also, Reliance Retail is operating a chain of wholesale outlets. Booker entered India in 2009 and currently runs six wholesale clubs in Maharashtra and Gujarat.

India allows 100% overseas capital in cash-and-carry retailing but such ventures are allowed to sell products only to members who must be other retailers, hoteliers and businesses owners, and not to the end consumers.

Last month, India's largest retailer Future Group announced that it is forming a 50:50 joint venture with British wholesaler Booker Group to open cash-and-carry stores and directly compete with Walmart and Metro in the country.

Siam Makro operates over 60 outlets in Thailand of multiple cash-andcarry formats that includes food and frozen food stores targeted at hotels, restaurants and caterers. India is part of Siam Makro’s international expansion to countries including Cambodia, Laos and Vietnam.