MUMBAI: Holcim. Ford. Cairn. Daiichi Sankyo. And now the Metro. These are some of the big names that have either left India or have downsized their operations over the past decade. Increased local competition, changing global market priorities, new business models, accumulated losses, among other factors are some of the reasons why some MNCs are withdrawing from India.
German wholesaler Metro, entered India 19 years ago with high hopes, and is now selling its local business to Dependent industryThe Indian market has undergone a dramatic transformation over the past few years, characterized by consolidation in trade and increasing digitalisation in wholesale. To keep up with this dynamic development and To continue to drive the company’s growth, significant investments will be needed.”
Global CEO Steffen Greubel said: “We have chosen an alternative that opens a new chapter for Metro India. Metro is selling Metro India to a strong partner that can bring Indian businesses to the table. Long-term economic and technological prospects”. notify staff.
Eight years ago, France’s Carrefour closed its wholesale stores in India. Analysts say the B2B (cash and fulfillment) segment is a low margin business and that is the main reason why even other MNCs like Carrefour have left India.
“Retail in India is increasingly consolidating to benefit much larger players like Reliance,” said Abneesh Roy of Nuvama Group. He added that kirana is also facing stiff competition and losing market share to fast commerce, e-commerce and modern commerce competitors.
The dynamics in various sectors of India are shifting with domestic players having a dominant presence and multinational companies having a diminished role. For example, the consumer mobile service business and the cement industry. After the large Swiss company Holcim sold its cement units in India to Adani, the leading players in the field were domestic companies.
J Sagara Association “The exit of large multinationals is part of their business and commercial reasons and not the legal and regulatory requirements in India,” said partner Lalit Kumar. Holcim has said that the withdrawal from India is to focus on green business. According to industry experts, some of the reasons behind some MNCs’ decision to withdraw from India include a business model that doesn’t match the global parent company’s business model; poor profits; and on top of that, traditional business has been severely disrupted by online channels.
“Carrefour, Walmart and now Metro have left India for different reasons, but the reality is that countries like India are the exceptions. While Walmart abruptly halted its pregnancy expansion and that led to a bit of a stagnation, Carrefour wanted to be a pure retailer but it started with cash and takeout, which didn’t fit the global plan and so , it doesn’t suit them either. So their model in India doesn’t fit the global model and that’s the main reason why some MNCs have pulled out,” said an industry expert. .
German wholesaler Metro, entered India 19 years ago with high hopes, and is now selling its local business to Dependent industryThe Indian market has undergone a dramatic transformation over the past few years, characterized by consolidation in trade and increasing digitalisation in wholesale. To keep up with this dynamic development and To continue to drive the company’s growth, significant investments will be needed.”
Global CEO Steffen Greubel said: “We have chosen an alternative that opens a new chapter for Metro India. Metro is selling Metro India to a strong partner that can bring Indian businesses to the table. Long-term economic and technological prospects”. notify staff.
Eight years ago, France’s Carrefour closed its wholesale stores in India. Analysts say the B2B (cash and fulfillment) segment is a low margin business and that is the main reason why even other MNCs like Carrefour have left India.
“Retail in India is increasingly consolidating to benefit much larger players like Reliance,” said Abneesh Roy of Nuvama Group. He added that kirana is also facing stiff competition and losing market share to fast commerce, e-commerce and modern commerce competitors.
The dynamics in various sectors of India are shifting with domestic players having a dominant presence and multinational companies having a diminished role. For example, the consumer mobile service business and the cement industry. After the large Swiss company Holcim sold its cement units in India to Adani, the leading players in the field were domestic companies.
J Sagara Association “The exit of large multinationals is part of their business and commercial reasons and not the legal and regulatory requirements in India,” said partner Lalit Kumar. Holcim has said that the withdrawal from India is to focus on green business. According to industry experts, some of the reasons behind some MNCs’ decision to withdraw from India include a business model that doesn’t match the global parent company’s business model; poor profits; and on top of that, traditional business has been severely disrupted by online channels.
“Carrefour, Walmart and now Metro have left India for different reasons, but the reality is that countries like India are the exceptions. While Walmart abruptly halted its pregnancy expansion and that led to a bit of a stagnation, Carrefour wanted to be a pure retailer but it started with cash and takeout, which didn’t fit the global plan and so , it doesn’t suit them either. So their model in India doesn’t fit the global model and that’s the main reason why some MNCs have pulled out,” said an industry expert. .
