D’mart’s Gold Lining

The world has seen many a tales of people and organizations striking gold mines overnight from very humble beginnings. And those in turn inspire millions of common men looking to float their ideas and build their own empires. Their dreams often revolve around minting big money in the Indian cities’ crowded, crammed pasture. Recently, D-Mart, Mumbai-based acutely low-profile supermarket chain epitomised this story as it ruled Dalal street with its share almost doubling in value after its initial public offering (IPO). The company’s shares were sold at Rs 299 a piece at the IPO and surged as much as 106 per cent after listing at 604.4 on the Bombay Stock Exchange on Tuesday, making it the best IPO listing in recent Indian corporate history. Its current market cap stands at Rs 39,400 crore- which is higher than combined market capitalisation of both Future Retail and Aditya Birla Fashion. In an exclusive chat with Meghna Maiti, Neville  Noronha, managing director of Avenue Supermarkets, the operator of D’Mart speaks about the strategies that worked for them:

  • Patience
  • Doing the small things repeatedly and consistently
  • Being selective about product stocking
  • Competitive pricing and well-managed supply chain
  • Not having more than 30 days of inventory
  • Providing value-conscious products to the customers
  • Entering only into long-term leases to minimise rental costs
  • Procuring good directly from vendors and manufacturers


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