Ultra-rich businessman Radhakishan Damani has gone public with supermarket chain D-Mart
Famous retail chain D-Mart run by owner Radhakishan Damani has gone public with a valuation of Rs 40,000 crore. D-Mart is run by parent company Avenue Supermarkets Ltd. also owned by Damani.
61 year old, Radhakishan Damani shares the ownership of Avenue Supermarkets with his family with 39.4 percent and 42.8 percent respectively, making a total of 82.2 percent. The value of Damani’s family stake is Rs 32,870 crore (exceeding the market capitalization of ACC Ltd. and Tata Powers).
D-Mart is one of the most profitable supermarket chain in India. The firm earned a profit of Rs 300.21 in 2016 at a revenue of just Rs 8,600 crore. It has shown tremendous expansion with just one store in 2002 to a total of 112 stores in 2016. Similar to Walmart, D-Mart does not conduct any festive season sale but lowers cost of its products daily (known as everyday low cost/ everyday low price strategy) in order to value-retailing to its customers. According to the firm, their strong vendor and supplier relationship and pricing strategy helps them to give a tough competition to other players in the market.
Radhakishan Damani also owns a stake in cigarette company VST Industries Ltd. and Blue dart Express Ltd. The success of D-Mart is not just an inspiration for its rivals but also for e-commerce companies. Unlike other stores, D-Mart is very selective regarding its stock and does not hold a wide spectrum of product range.