DMart bets on tech, execution for next growth phase
In his first year at the helm of Avenue Supermarts Ltd, which runs India’s largest supermarket chain DMart, Anshul Asawa has outlined a road map
In his first year at the helm of Avenue Supermarts Ltd, which runs India’s largest supermarket chain DMart, Anshul Asawa has outlined a road map for growth centred on technology, execution and organizational capabilities, while retaining the low-cost retail philosophy championed by billionaire founder Radhakishan Damani. At the annual investor meeting on Tuesday, Asawa said DMart’s next phase of growth would focus on modernizing its technology and data infrastructure, strengthening management bandwidth to support a larger store network and building a sustainable e-commerce business before expanding its online footprint. The comments marked the clearest indication yet of how Asawa plans to steer the retailer after succeeding long-time chief executive Neville Noronha earlier this year. While Noronha spent over a decade refining DMart’s everyday low-price model through disciplined expansion and operational efficiency, Asawa’s focus is on building the systems and capabilities required to scale the business further. The strategy comes as DMart faces increasing competition from quick-commerce platforms in its core metro markets. Its consolidated revenue rose 14.9% year-on-year to ₹18,794.5 crore in the June quarter, while net profit increased 11.3% to ₹860.4 crore. However, growth in mature stores slowed to 5.5% from 10.8% in the previous quarter, as metro store productivity came under pressure from rapid-grocery delivery players.
Asawa, who spent the past year visiting stores, distribution centres and interacting with employees, vendors and customers during the leadership transition, said DMart’s core model would remain unchanged. “The fundamentals of this business are rock solid. The model of providing everyday low prices through an everyday low-cost operation is not just a strategy, but it has become our moat and will continue to protect us for years to come,” he said. Also Read | Wipro Consumer, Murugappa lead race for Double Horse Asawa said organized retail still has significant headroom for growth despite the rise of quick commerce, adding that DMart’s long-term focus would remain on serving customers through its physical store network. As the retailer crossed the 500-store milestone, ending the June quarter with 503 outlets, Asawa said execution would be the company’s biggest priority. “DMart is all about execution, plain and simple. To support a much bigger footprint, we will be investing heavily in building management bandwidth and capabilities across all levels of the organisation,” he said. The management reiterated its ambition to add stores at around 15% annually, with the potential to move towards 20% depending on land availability and execution. To accelerate expansion in land-constrained markets such as the Capital Region, the retailer said it is increasingly open to long-term leases.
The BriefWire