German supermarket giant Metro is to double its number of cash and carry outlets in India, as its rivals gear up to take advantage of the fast-growing economy.

Metro vice-president of international affairs Henry Birr said at a news conference that the retailer will invest US$120 million (£66.4 million) in at least four new wholesale cash and carry stores in India. The outlets will be in the eastern state of West Bengal, where the retailer is waiting for the state to issue licences so it can deal in agricultural produce that it can source directly from farmers.

Birr was reported to say that Metro sees the same growth potential in India as it does in China, where the retailer has 37 cash and carry outlets. Metro’s existing Indian cash and carry outlets are in Mumbai, Hyderabad and Bangalore, where it has two shops.

Metro was one of the earliest foreign entrants into India, but next year rivals Wal-Mart and Tesco will also be making their debut in the $350 billion (£193.51 billion) market.

Wal-Mart has partnered with Bharti Enterprises and will open its first cash and carry outlet early next year, while last month Tesco struck a deal with Tata Group’s retail division Trent and will open its first cash and carry store later in 2009. French giant Carrefour is also plotting its entry into the Indian market but has not yet revealed its joint venture partner.

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