Inspiring success story of Dmart - Prime Insights - Business Magazine

Inspiring success story of Dmart

success story of Dmart

Inspiring success story of Dmart

  • Mr Radhakishan Damani is a famous investor and shareholder known to the world as the founder of the retail chain, Dmart. The company has made a spectacular debut on BSE (Bombay Stock Exchange) due to the shares that got listed at a premium percent of 102.14. There are many public shares of Dmart holding under its parent company, Avenue Supermarts.
  • Today, Dmart has earned a value of Rs 39,400 crore, which is more than the combined market capital of Future Retail and Aditya Birla Fashion.

The Road to Success

  • Right from the inception of Dmart, it has risen so rapidly that it has even led to Kishore Biyani competing Future Group. Dmart was founded in the year 2002 by Damani after he had already secured millions in the market. Damani picked up several value stocks and observed their expansion to stratospheric valuations for legendary companies like HDFC Bank and Gillette.
  • Damani started investing in stocks at the age of 32. Soon by the end of 90s, he became one of the biggest stock investors. He always decided to start his own work and that is why he founded the supermarket chain Dmart. He adopted certain strategies that make his Dmart separated from other retail chains. Dmart cautiously did its research on various retail chains and finally owned his own stores in various corners across India. While other retail market players, wasted time in time change and forayed, into other categories like fashion and electronics. He always remained focused on its core food and grocery business in the market. Where other supermarket chains launched their own private brands, Dmart still stocks only third-party products for its grocery.

Retention of customer trust

  • The dedicated customer base is one of the major reasons why Dmart has become highly popular. The store decoration of Dmart is simple even for the people living in such a popular metropolitan city like Mumbai. Customers keep returning to this trusted brand name because of its low price range products with its quality intact. 

Strategic measures adopted by Dmart

  • Dmart always wanted to create its image in the market amongst other companies by providing a discount-based store that offers most of the products from different famous brands. Most people come to Dmart due to the availability of all essential items under one roof. The Dmart stores are operationally high traffic areas and urban cities. It is providing business across the three formats including hypermarkets. Dmart Express is spread over around 7-10 thousand sqft area. The SuperCenters established at over 100,000 sqft area is a huge business segment for Dmart. The discount offers, act as a promotional tool to lure various types of customers, ultimately increasing their sales level. The success story of Dmart primarily focuses on the following:
  • All customers
  • Vendors
  • And its employees.
  • Dmart mainly targets middle-income household as their real-time strategy. Therefore, all its realtime stores are located in or near residential areas other than malls. Not only the consumers need but also the aspiration to meet the most regular consumer needs has established the brand value. Dmart provide full value for its customers in groceries.

The growth curve of Dmart

  • Damani always appreciated consumer-based business and always invested similar stocks to grow. His affinity towards making a startup was proven successful in the year 1999. When the retailing business was far from India, Damani decided to enter the ring of this market with the power of winning. He later took a 5000 Sqft land called ApnaBaraaz Franchisee in Nerul, Navi Mumbai.
  • After 2 years, Dmart finally took over Apna Bazar as their own brand. Initially, the business was about intensive market learning. Primarily, the customer’s mindset. Creating a store chain, Improved billing system in India and gaining the confidence of vendors etc. Its fully profitable approach seems to be modelled after its founder. In the list of the wealthiest retail chains, Dmart is positioned on the 98th rank by Forbes. 
  • Damani’s net worth is around $1.1 billion. He builds his fortune by buying multinational stocks during the late 80s and early 90s. He is one of the very few to have made ties with Harshad Mehta (the Big Bull of the stock market). This collaboration brought Radhakishan at the top of the stock market. Over time, he has transformed himself into the most valued investor. Understanding the market’s swings and betting on companies that can prove to be successful in the longrun, has always been Damani’s key to success.
  • Some of Damani’s investments include GE Capital Transportation Industries ion (1.43% stake), VST Industries (23.97% stake), Samtel Ltd (3.05% stake), SchlafhorstEng (I) (1.05% stake), Somany Ceramics (2.79% stake), Jay Shree Tea (1.07% stake), 3M India (1.48% stake) etc. Dmart has thus proven to be a one-stop shopping destination that meets all the household requirements of a family.

20 thoughts on “Inspiring success story of Dmart

  1. I’m really impressed with your writing abilities and also with the format in your weblog. Is that this a paid topic or did you customize it your self? Anyway keep up the excellent high quality writing, it is rare to see a nice blog like this one today.

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