Dmart’s founder Radhakrishna Damani has made up his mind to give a tough competition to Mukesh Ambani’s Reliance Retail. They have decided to increase the number of DMart stores to five times. At present DMart has 284 stores. Avenue Supermarts plans to increase this to 1,500. Avenue is the parent company of DMart. It runs its stores under the brand DMart.
At present, Avenue Supermarts is at the fourth position in terms of number of convenience stores. The company wants to increase its market share. The company’s CEO Navil Noronha gave information about this. However, he did not specify when the company would increase the number of stores to five times and how much it would invest.
DMart is known for offering attractive discounts to the customers. It gives good discount on almost every product. Because of this it is very popular among the customers. Noronha said that there is a lot of growth potential in the Indian market. Big companies can do business without any worries.
Avenue Supermarts opened 50 new stores in the financial year ended March. The eyes of the company are on the fast growing middle class in the country. According to the results of some research, the share of the middle class in the total population of 1.4 billion of the country can reach up to 50 percent. Due to rising inflation, the interest of this segment has increased in discount shopping, DMart has a special identity in discount shopping.
Apart from increasing the number of offline stores, DMart is also looking to expand its e-commerce business. This business has not turned into profit yet. Other retailing companies are also focusing on e-commerce business.
The Avenue CEO said the country has a lot of opportunities for the brick-and-mortar retailer. You just need to focus on increasing the number of stores. Currently, the organized grocery market in India is in its infancy.
Damani, 68, got Avenue Supermarts listed on the stock exchange in 2017. The stock has given 1,370 per cent returns since then. With this, Damani’s net worth has increased to $22.1 billion. Investors who initially invested in this stock have also become rich. On August 18 (Thursday), the stock of DMart was trading 0.60 per cent higher at Rs 4,426 in the morning.
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