Supermarket chain DMart to set up shop in Delhi: Report
DMart, one of India’s largest supermarket chains, is set to enter the national capital - a move that will help billionaire founder Radhakishan Damani widen the brand’s footprint outside of western and southern Indian markets, according to a report in the Economic Times on Tuesday.
Mumbai-based parent Avenue Supermarts Ltd has taken about 50,000 sq ft of space in east Delhi’s Karkadrooma Court area for its first outlet in the national capital, the report said, citing a person familiar with the development. Another person said, “They are scouting for space for 4-5 stores in Delhi NCR.”
Neville Noronha, managing director of Avenue Supermarts, declined to comment.
Avenue Supermarts operate about 200 supermarket stores primarily in Maharashtra, Gujarat, Andhra Pradesh, Madhya Pradesh, Karnataka, Telangana, Rajasthan and Chhattisgarh. In the north, DMart operates stores in Ghaziabad in Uttar Pradesh, and Punjab.
A recent report by brokerage firm ICICI Securities said DMart opened seven outlets in the third quarter ended December.
“More importantly, average size of 67,000 sq ft for new stores (versus 34,000 sq ft company average) augurs well for long-term revenue growth as well as margin expansion,” the ICICI Securities report said.
Shares of Avenue Supermarts have rallied 31% so far this year, adding about ₹36,000 crore in market capitalisation and making founder Damani the country’s second-richest person after Mukesh Ambani with a net worth of $17.8 billion.