The Rise of Dmart: Radhakishan Damani's Extraordinary Journey
Nandan Kumar
✨Digital Growth Specialist @ Award Winning Agency Addpro. ✨Business Growth Strategist, India's MSME Growth Mentor. ✨Helped more than 500+ Business to Digitalized. ✨Ex: Tradeindia | Indiamart | Getit.
Radhakishan Damani, a renowned figure in the stock market, left everyone astonished in 2000 when he quit. His subsequent move, however, was even more surprising.
A New Beginning
In 2002, Damani purchased a 5,000 sq ft franchise of Apna Bazar in Nerul, Navi Mumbai, unveiling his plan to launch a retail store. This marked the birth of DMart - Avenue Supermarts Ltd , a revolutionary concept that provided daily-use products at significant discounts.
Innovative Strategy
Dmart's strategy was straightforward – pay vendors in 11 days instead of 21 to secure lower-cost products. Unlike competitors leasing stores, Damani opted to buy. The first Dmart store opened in 2002 in Powai, Mumbai, focusing on improving billing systems and building trust with vendors.
Steady Expansion
After successfully capturing Mumbai, Dmart expanded to Ahmedabad in 2007, achieving revenues of 260 CR from just two stores. Annual additions in Pune, Baroda, Sangali, and Solapur led to a model replication in 25 stores across the Western belt by 2010.
Financial Success
Dmart's revenue soared to 3,334 CR in 2013, making it the third-largest branded retail chain after Reliance Retail and Future Group. Without relying on private label products, Dmart achieved a profit of 100 CR in 2014, showcasing Damani's profit-first approach.
IPO and Stock Market Return
In 2017, Radhakishan Damani re-entered the stock market as an entrepreneur. Dmart went public with an 1870 CR IPO and subscribed 104 times, making it a 40,000 CR company by market close.
Sustainable Growth
Post-IPO, Dmart continued expanding gradually, maintaining an impressive record of never closing a single store. By 2021, it operated 234 stores in India, owning 80% of them.
Today, Dmart stands tall with 330 stores and a market cap of 2,00,000 CR. It ranks as the world's 603rd most valuable company and is the first Indian retail chain to cross the billion-dollar mark profitably. Radhakishan Damani, often recognized by his distinctive white T-shirt and trousers, is affectionately known as "Mr. White and White."
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