MANAGEMENT

PRINCIPLES &
PRACTICES
PRESENTATION
 ABOUT DMart:
Avenue Supermarts Limited, @
CASE STUDY DMart, is an Indian retail corporation
that operates a chain of
hypermarkets in India. It was
founded by Radhakishan Damani in
2002, with its first branch in Powai's
Hiranandani. DMart is a one-stop
supermarket chain that aims to offer
customers a wide range of basic
home and personal products under
one roof. Each DMart store stocks
home utility products - including
food toiletries beauty products
garments kitchenware bed and bath
linen home appliances and more -
available at competitive prices.
ABOUT THE FOUNDER :

Radhakishan Damani was born on 15

March 1954 to an Indian Marwari
family, born and brought up in
Bikaner, Rajasthan. RK Damani is one
of the few self-made billionaires in
the country and comes from a humble
beginning. Famously known as Mr.
White and White. He started his
career as an investor in the stock
market in the year 1980. In 2001,
After reaching such great heights, he
suddenly quit the stock market
business and decided to enter the
retail industry. He launches Dmart
supermarkets and hypermarket
chain. After this, he announced the
IPO of D-Mart in the year 2017
BACKSTORY OF DMART:
Avenue Supermarts was incorporated as
Avenue Supermarts Private Limited on May 12
2000 at Mumbai Maharashtra as a private
limited company under the Companies Act
1956. Subsequently the name of the Company
was changed to Avenue Supermarts Limited
due to conversion from a private company to a
public company pursuant to a special
resolution passed by the Shareholders at an
extraordinary general meeting held on
February 1 2011. Pursuant to the aforesaid
change of name a fresh certificate of
incorporation was issued to the Company by
the RoC on May 3 2011.The supermarket chain
of DMart stores is owned and operated by
Avenue Supermarts Ltd. (ASL). The company First Dmart Store in Powai
has its headquarters in Mumbai.
GROWTH OF DMART:
• R. K. Damani was an investor, he liked the consumer business and
was seen investing in similar stock too. Till 1999, He studied the
indian customer’s mindset and accordingly created a store layout,
billing systems, gaining the confidence of vendors. Within a year,
they decided to apply the model to multiple locations as well.

• In 2007, DMart began its expansion and went on to open various

stores in Ahmedabad, Baroda, Pune, Sangli and Solapur. Their
expansion strategy followed a collective approach and was
designed in such a way that they used the local vendor support.

• By 2012-13, DMart had soared its revenues from Rs. 260 crores in
2006-07 to Rs. 3,334 crores, making them India’s third-largest
branded retail chain. The beauty here was that, what Future Group
with 1000 stores was clocking (turnover of Rs.14,201 crores), and
Reliance Retail was clocking (Rs.10,800 crores) with 1450 stores;
DMart was achieving with just 65 stores, which weren’t pan India.
• By 2014, they had reached to account for
73 stores across Maharashtra, Gujarat,
Hyderabad and Bangalore. The company
has been growing robustly despite a
slowing economy and were also crossing
the Rs. 100-crore mark in profits.

• Moving on to 2015, with revenues worth

Rs. 6450 crores, DMart booked a profit of
Rs. 211 crores in FY14-15, which was
higher than Reliance Retail’s Rs. 159
crores and Future Retail’s Rs. 153 crores.

• DMart now accounts 221 stores spread

across 72 cities including states of
Maharashtra, Gujarat, Telangana, Andhra
Pradesh, Madhya Pradesh and
Karnataka, Since its initiation, DMart
became the first retailer to cross the
billion dollar market profitably.
STRATEGIC ELEMENTS OF DMART:

 Every Day Low Price

 Full Ownership of Space

 Low Margin and High Volume

 Low Private Brands:

 Elimination of Intermediaries

 Value Based Management and Team

 Cautious Business Focus

 Different Duckling Approach

 Assembly Chain of Sales

 Regimented Business Model

 Particular Location as per Density

 Conscious Pricing Approach

 Lowest Product Inventory Turnover

 Diligent Cost Control

 Low Cost Promotional Methods

 Emphasis on Fast Moving Products: