MAKRO GOES INTO BUSINESS
INTERNATIONAL CHAIN MAKRO BRINGS $200 MILLION INVESTMENT
Nov 27 - Dec 03, 2006
The economic conditions, rules and regulations are more open for foreign investment as compared to India that is the reason that MAKRO has chosen this country as a place to do business.
This was stated by Marek Minkiewics, Managing Director Makro-Habib Pakistan, at the opening ceremony of the first huge whole sale store offering 50,000 products under a joint venture between SHV from Netherlands and the House of Habib of Pakistan here in Karachi. Ali Habib, the Chairman of the company was also present on the occasion.
The opening of this international chain of cash & carry in Karachi is the beginning of a culture to provide quality goods of international standards at competitive prices to the retailers. The joint venture has an ambitious program to establish 30 such stores in all major economic centers of the country, said Ali Habib.
The second center in Pakistan will commence operations a few weeks later at Ravi Road in Lahore. Makro's thired store coming up on Shahrah e Faisal in Karachi. After opening business of the first Makro center on Manghopir road at SITE Industrial area, the second center in Karachi will go into business operation at Shahrah Faisal by the year end. Makro has a plan that by the end of 2007, Makro Habib will have a total of seven stores in service, different locations of Pakistan. Makro's immediate plan is to have 12 centers by the year 2009 for which real estate is being earmarked and negotiations are underway.
Ali Habib further opined that the existing yet happy investors could be the best ambassadors of the country to attract investment at a massive scale.
Marek added that Pakistan has been the most distinctively exceptional experience of his career abroad. This land, its people, and culture all is deeply embedded into its heritage. It has been a refreshing change from the generic social norms of societies today.
Pakistan's resourcefulness, its willingness to embrace change and its generosity of spirit has been the force behind successful launch of MAKRO stores in this country, he added.
Despite the turmoil in the world and Pakistan's particularly sensitive geo-political situation, SHV accepted President Musharraf's encouragement with an open mind and made its decision to come to Pakistan just a few months after the President Musharraf's visit to his country Netherlands.
He lauded the efforts of the government to boost foreign investment which he said reflected in positive improvement of the economy Pakistan .
Makro-Habib has trust in Pakistan's leadership and faith in its people and its potential for growth, he remarked.
Makro Habib has come in with an aggressive investment plan of 200 million dollars. It would employ and train over 4000 Pakistani nationals by the end of 2008. Makro is introducing the international standards of wholesale in a market that has almost not changed in the last two generations.
Makro is introducing systems of grading and modernizing the supply chain of farm products. It is bringing in a new supply system for retail traders. Makro will have a direct impact on the prices of food items through its Cash & Carry centers. And most of all, despite its vast investment, Makro's business is primarily aimed at the masses, most of whom do not have access to basic services in society. Makro will open their minds to their right to quality and price control, Marek observed.
Makro has a distribution mission of products with excellence in price, quality and variety to professional customers, offering them advantages and opportunities of growth.
Makro Cash & Carry is the leading cash-and-carry wholesaler of food and non-food products in Asia and south America.
Makro is a high volume, low cost-low price, no frills Cash & Carry wholesaler, selling to registered professional customers as a full range of food and non-food products with communication solely based on direct mailing. The core customer base is the retailer, caterer and professional in the service sector.
At present Makro outlets are located in five countries in Asia and four countries in South America with a total of 172 stores. Makro employes more than 15,000 people and services hundreds of thousands of professional customers everyday, resulting an annual turnover exceeding four billion Euros.
MAKRO IN ASIA
THE Makro concept has been successfully introduced in Asia since 1989 with the opening of first store in Bangkok, Thailand. Being the poineer in modern wholesale and trade concept in the region, Makro has expanded rapidly in Asia by opening more stgores and moving into new markets, resulting in a leading position in the cash-and-carry wholesale sector.
Besides Asia, Makro is a leading chain of stores of food and non-food products in South America as well.
Broadly speaking the potential customers of this chain of wholesale stores are including food and non food retailers such as general stores, electronic goods, bakery, fruit & vegetable shops, hotels, restaurant and caterers. The service sector such as offices, beauty saloon, schools and hospitals are also the beneficiaries of Makro stores.