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Dmart success story: Radhakishan Damani founder history


People are more likely to shop at low prices. Especially, Indians always want to save money on a purchase.

So, people are always head to hypermarkets to access more discounts. Because hypermarkets sell products at low prices and give attractive discounts.

In this context, Dmart a hypermarket store fits this category. This hypermarket chain has a legacy of more than 18 years.

This hypermarket is the savior for middle-class and lower-middle families. Because this company sells way cheaper than Big Bazar and Reliance fresh.

So, people are more likely to shop at Dmart. In this blog, we try to understand about history and strategies of the company. Dmart success story

Dmart startup


Dmart is the best hypermarket chain in India. This company is under Avenue Supermarket Limited. The company provides the best quality of products at affordable prices.

This hypermarket chain counts up to 234 in 2021. Still, the expansion is going on year on year. It spreads over across 214 locations. Dmart hypermarket has covered major cities of India.

Radhaskishan Damani is the founder of Dmart. He founded this company in 2002. Damani’s vision was to provide the best prices of products for the middle-class community.

Dmart has 9,456 permanent employees and 38,952 contract-based employees. This hypermarket chain serves millions of Indians every day.

Dmart is a company that has never incurred losses to date. In FY19, the income is over 1,300 crores. The company has a market cap of 2 trillion.

Founder Radhakishan Damani: Dmart success story


Radhakishan Damani was born on January 1, 1954. He comes from the poor and humble Marvadi family from Karad Maharastra.

His father was working in Dalal street center. The family was under financial stress. So, Damani knows the value of money since childhood.

Damani had a great interest in the business-oriented sector. He got admission for commerce at the University of Mumbai.

Then he could not complete his graduation because of his father’s unexpected death. So, he dropped out of college after a year.

Then he possessed a ball bearing business for some time. But it did not work well enough. So, he quit the business. And venture out for some new vertical of business.

Further, his interest in stocks was immense. So, he became a stockbroker in Bombay. Then he got a lot to learn about the stocks exchange.

While Damani became very intelligent at the stock exchange. He knew when to sell and buy the shares. During the course, he got to know about a clear picture of the share market.

But he didn’t want to continue as a stockbroker anymore. Because he knew it was his time to play the game. He was confident about himself and had hoped to do something big.

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Radhakishan Damani and short selling : before Dmart success story

In the 1990s, Damanis started to invest in the share market. He was very proficient in buying the shares. Because he would always buy the share with the intention of long-term.

Not everyone was capable of doing that. Damani would wait for the profits for a long time. He is the man with the right and futuristic vision.

Radhakishan Damani also made a lot of money through short selling. This is the technique where it happens in a reversal manner.

Basically, in the share market, a person buys a share at a low price and sells it when it reaches to high value. But in short-selling, is contrary where the shares are sold first at a high price and buys when the share reaches a low price.

Click here to know about short selling.

So, Damani practiced this trick and made a lumpsum amount of profits. Even when the Harshad Mehta scam worth 5,000 crores exposes in 1992, Damani made huge returns.

Damani was very sure about the downfall of Harshad Mehta. Harshad simply raise the price of shares and so had other investors invest in it foolishly. Ultimately, the share price goes high and Harshad crab this time to sell his shares.

But Sucheta Dalal exposed his scam in 1992. All of a sudden his share value declined on one side. On the other side, Damani made a lot of profits through short-selling.

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Dmart Foundation

Then Radhakishan Damani made up his mind to become an entrepreneur. He then set up a departmental store in 1999 named “Apna Bazar”.

But, soon Damani realized the inefficiency in the business model. Got to know business won’t be sustainable for a long time. So, he dropped the business and shut down the operations.

Then in 2002, Radhakishan Damani found Dmart a hypermarket store. His first outlet started in an apartment room in Mumbai. Then he launched his first store Powai in Mumbai.

Dmart served its customers at affordable prices. Even, customers too found it cheaper than any other hypermarket. There was strong company and customers engagement. Dmart success story lies in discount strategies.

As time passes, the company grew beyond expectations. The business starts from the room and now it has more than 200 outlets across Indian cities.

Dmart also went out to the public and raised 1,870 crores of IPO in 2017. Its share price list at 102.14 percent premium at Bombay Stock Exchange.

Now, Radhakishan Damani’s net worth raise up to $15.6 billion. He is the fourth richest person in India.

Radahkishan Damani became richer by share market investments. He also had a big deal of shares in HDFC bank. Also, he has the majority of shares in the VST industry ltd, Indian Cements Ltd, and Sundaram Finance.

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Sales strategies of Dmart

Dmart makes a lot of sales in India. Even Big Bazar and Reliance Fresh cannot compete with this retail company Dmart. Here are some of the strategies of Dmart

Firstly, the company provides huge discounts to its customers. Because it purchases a lot of products in bulk. So that it can avail customers with huge discounts. Dmart success story is wholy depend on its discounts.

Secondly, Dmart has all its stores in their own properties means they are not in rented space.

So, Dmart makes a lot of savings and manipulates this amount to give more discounts and for expansion.

Thirdly, Dmart won’t spend on luxury interiors and outlets. Their shopping complex is with low and decent designs.

They won’t waste money to provide high-end services. This makes the revenue growth in a positive direction.

Fourth, Dmart gives the returns(profit) to its brands within a week. Unlike, Big Bazaar and Reliance Fresh make their return with 90 and 30 days respectively. So, brands are likely to give the deal to Dmart at an affordable price.

Finally, Radhakishan Damani’s vision was at the long-term and high return strategy. Because Damani primarily makes the supply chain and profits stronger and then made study expansion.

These all factors add up for the huge growth of Dmart. So, now Dmart is the highly profitable retail sector.

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Ecommerce effects

Even though internet penetration and online shopping are high. Still, most middle and lower-middle-class people prefer to buy offline.

But Dmart has to take the right call and want to step into online delivery. Because online shopping is increasing day by day. Even people with busy schedules are preferring online shopping.

Even Reliance also stepped into online delivery with the launch of Reliance smart. Competitors like Gofers and Bigbasket are also increasing their sales. Even the corona pandemic fueled its revenue.

So it is the right time for Dmart to understand the trend and go digital.

Dmart revenue 2022

Every other company are are fighting to survive in this tough situation. It is very hard for companies to survive in this critical post-pandemic condition.

But, Dmart supermarket is making more revenue than the previous year. In 2022 Dmart supermarket made 1667 crores in the just first quarter. comparatively, in 2021 Dmart revenue stood at 791 crores.

Even Dmart losses are also increased by over 40% in 2022. So in 2022, Dmart recorded a loss of 142 crores. Previously in 2021, Dmart losses were just up to 80 crores.

In 2022, there are over 284 Dmart stores across India.

Even Dmart is stepping into to online grocery delivery space. Because a lot of companies like Zepto, Big Basket, Blinkit, and Jio mart fought each other in the competition.

Dmart 2022 Share price

Dmart is one of the leading hypermarket chains in India. It has got listed Stock Market since 2002, under its parent company Avenue Supermarkets. Now its share price got increased by 29%. And it is also expected that each share price could be 5100 by 2024. 

Also, Dmart founder RadhaKishan Damani is planning for Rapid expansion by opening 1500 stores. At present, in 2002 Dmart share price is 4391.75 per share on BSE. 

In the second quarter of 2022, Dmart reported a 35% increase in its revenue and made around 10,384 crores. Previously, in the 2020-21 second quarter, it made 5,218 crores. 

Now Dmart is also competing with the online grocery segment. It started with Dmart ready which serves online deliveries to its customers.

In this way, Dmart became one of the best retail sellers in India. Founder of DmartRadhakishan Damani took the right decision and build a large empire.

This company saves a lot of money on the purchase and even provides a lot of employment.

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