Radhakishan Damani is the visionary entrepreneur behind one of India’s largest retail chains,

DMart. As the founder and DMart owner, Radhakishan Damani has revolutionized the retail
industry with his astute business strategies and commitment to customer satisfaction with a
strong focus on offering quality products at affordable prices.

DMart is one of the largest chains of Hypermarkets in India. DMart offers a wide variety of food,
clothing, and home utility products at the most competitive prices you might have ever come
across. Through its 306 stores, DMart has established a strong presence in India. You can find
DMart stores in 11 states of India, including Gujarat, Maharashtra, Telangana, Andhra Pradesh,
Madhya Pradesh, Rajasthan, Chhattisgarh, National Capital Region, Punjab, Karnataka, Tamil
Nadu, Daman, and Uttar Pradesh.

Radhakishan Damani was 45 years old when he founded DMart in 2002. By then, he had already
made millions by trading in stocks. Damani’s decision to adopt unique strategies has made
DMart what it is today. For instance, where most other retail chains rent their businesses, DMart
owns each store. They have never closed any of their stores ever since they launched. Thanks to
the extensive research the DMart team does before opening each store.

Though it seemed tempting to foray into categories like fashion and electronics, DMart has
focused only on its core business, food and grocery. The retail chain hasn’t even launched its
private brand to increase sales. Even today, it is only third-party grocery products that DMart
stocks.
Who is Radhakishan Damani?
A Billionaire Investor from India, Radhakishan Shivkishan Damani, popularly known as RK
Damani, is a business magnate and DMart Founder (founder of Avenue Supermarts Limited). He
also owns Bright Star Investments Limited, an investment firm through which he manages the
Damani Portfolio. Bloomberg Billionaire Index ranked the DMart Owner as the 98th Richest
Person in the World (in 2021).

Born in a Maheshwari Marwari Family in Bikaner, Rajasthan (DMart Owner Native Place), RK
Damani wasn’t raised in a wealthy environment. The family lived in a humble single-bedroom
apartment in Mumbai since his father worked on Dalal Street.
Not much is known about Radhakishan Damani’s Education. He studied commerce at the
University of Mumbai; he gave up his studies after his first year at college and joined his father’s
metal rollers business. He took an interest in stock market trading after his father’s death.

RK Damani started his career as a stock broker. However, he soon realized that he had to invest
his own money if he wanted to make money in the stock market. In 1980, he started investing in
stocks named Mr. White and White. He was practising short-selling of stocks by being a part of
the bear cartel. In fact, during the 1990s, when Harshad Mehta’s Scam was in the limelight,
Damani made extensive profits through short-selling.

In 1999, Damani decided to take up a franchise of a cooperative department store called Apna
Bazaar (In Nerul). However, he was not convinced by its business model. So he started DMart, a
Powai store, in 2002. By 2010, DMart became a chain of hypermarkets with 25 stores. In 2017,
Damani went public and became the 4th Richest Person in India in 2020, with a net worth of
$16.5 billion. Today, Radhakishan Damani’s Net Worth is $21.3 billion.

How was DMart Founded?

After his successful stint in stock market trading, where he made millions by short-selling stocks,
RK Damani started investing in consumer retailing organizations. When owning a franchise of
Apna Bazaar did not appeal to him, he decided to open his chain of hypermarkets called DMart.
It all started in 2002 as a small store in Powai.

About two decades ago, when Damani founded DMart, the retail industry had seen many new
prominent entrants, such as Subhiksha and Big Bazaar. Most such retail chains had adopted a
rental model, spending large amounts on furniture and fixtures. The focus was largely and only
on retailing.

Although the entry into the market faced tough competition, DMart managed to stand out by
owning the land it operated on. Buying products in bulk at low prices and then selling them all
together made it easier for the DMart owner to stick to his ‘High Volume-Low Margin’ principle.
Also, he made sure DMart stuck to its core food and grocery business without diversifying into
the other markets.
Home » Earn Online » Radhakishan Damani: Success Story Of DMart Owner

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Radhakishan Damani: Success Story Of DMart Owner
September 25, 2023

D mart owner
Table of Contents
Who is Radhakishan Damani?
How was DMart Founded?
Growth of DMart
Impact and Awards
Towards Success and Beyond
Frequently Asked Questions
Radhakishan Damani is the visionary entrepreneur behind one of India’s largest retail chains,
DMart. As the founder and DMart owner, Radhakishan Damani has revolutionized the retail
industry with his astute business strategies and commitment to customer satisfaction with a
strong focus on offering quality products at affordable prices.

DMart is one of the largest chains of Hypermarkets in India. DMart offers a wide variety of food,
clothing, and home utility products at the most competitive prices you might have ever come
across. Through its 306 stores, DMart has established a strong presence in India. You can find
DMart stores in 11 states of India, including Gujarat, Maharashtra, Telangana, Andhra Pradesh,
Madhya Pradesh, Rajasthan, Chhattisgarh, National Capital Region, Punjab, Karnataka, Tamil
Nadu, Daman, and Uttar Pradesh.

Radhakishan Damani was 45 years old when he founded DMart in 2002. By then, he had already
made millions by trading in stocks. Damani’s decision to adopt unique strategies has made
DMart what it is today. For instance, where most other retail chains rent their businesses, DMart
owns each store. They have never closed any of their stores ever since they launched. Thanks to
the extensive research the DMart team does before opening each store.

Though it seemed tempting to foray into categories like fashion and electronics, DMart has
focused only on its core business, food and grocery. The retail chain hasn’t even launched its
private brand to increase sales. Even today, it is only third-party grocery products that DMart
stocks.

Who is Radhakishan Damani?

A Billionaire Investor from India, Radhakishan Shivkishan Damani, popularly known as RK
Damani, is a business magnate and DMart Founder (founder of Avenue Supermarts Limited). He
also owns Bright Star Investments Limited, an investment firm through which he manages the
Damani Portfolio. Bloomberg Billionaire Index ranked the DMart Owner as the 98th Richest
Person in the World (in 2021).

Born in a Maheshwari Marwari Family in Bikaner, Rajasthan (DMart Owner Native Place), RK
Damani wasn’t raised in a wealthy environment. The family lived in a humble single-bedroom
apartment in Mumbai since his father worked on Dalal Street.

Not much is known about Radhakishan Damani’s Education. He studied commerce at the
University of Mumbai; he gave up his studies after his first year at college and joined his father’s
metal rollers business. He took an interest in stock market trading after his father’s death.

RK Damani started his career as a stock broker. However, he soon realized that he had to invest
his own money if he wanted to make money in the stock market. In 1980, he started investing in
stocks named Mr. White and White. He was practising short-selling of stocks by being a part of
the bear cartel. In fact, during the 1990s, when Harshad Mehta’s Scam was in the limelight,
Damani made extensive profits through short-selling.

In 1999, Damani decided to take up a franchise of a cooperative department store called Apna
Bazaar (In Nerul). However, he was not convinced by its business model. So he started DMart, a
Powai store, in 2002. By 2010, DMart became a chain of hypermarkets with 25 stores. In 2017,
Damani went public and became the 4th Richest Person in India in 2020, with a net worth of
$16.5 billion. Today, Radhakishan Damani’s Net Worth is $21.3 billion.

How was DMart Founded?

After his successful stint in stock market trading, where he made millions by short-selling stocks,
RK Damani started investing in consumer retailing organizations. When owning a franchise of
Apna Bazaar did not appeal to him, he decided to open his chain of hypermarkets called DMart.
It all started in 2002 as a small store in Powai.

About two decades ago, when Damani founded DMart, the retail industry had seen many new
prominent entrants, such as Subhiksha and Big Bazaar. Most such retail chains had adopted a
rental model, spending large amounts on furniture and fixtures. The focus was largely and only
on retailing.

Although the entry into the market faced tough competition, DMart managed to stand out by
owning the land it operated on. Buying products in bulk at low prices and then selling them all
together made it easier for the DMart owner to stick to his ‘High Volume-Low Margin’ principle.
Also, he made sure DMart stuck to its core food and grocery business without diversifying into
the other markets.

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Growth of DMart
Unlike other retail brands that operated on a rental model, DMart owned every store it operated.
So, for the initial 15 years (until 2014), DMart operated its stores only in four states of India. It
was only after the company went public in 2017 that it expanded its presence across 11 states of
the country.

Efficient management of Inventory is one of the secrets behind the success of DMart. Instead of
placing importance on the presentation of products, they launch maximum products in less space.
This makes it easier for customers to find the products they need. Also, by using fewer cash
counters, they cut their employee costs.
The store-ownership model has also made DMart a company with low or no debts. Stocking up
inventory in huge volumes helps them offer huge discounts that keep their customers coming
back to them. They charge their suppliers something called Slotting Fee, which helps them place
their products on the shelves appealingly and attractively.

Offering quality products at affordable pricing has always been the principle on which DMart
has been operating. Hence, its marketing strategy is also based on the demands of its consumers.
Its USP is to sell products at prices lower than MRP (Maximum Retail Price). Here are the main
elements that form the core of the marketing strategy adopted by DMart:

Pricing: DMart’s ‘High-Volume Low-Margin’ business model has not only helped DMart stand
apart from its competitors but also helped form a strong bond with its customers.
Product Quality: DMart sources products only from reputed suppliers who stick to high quality
standards. The brand has managed to establish a reputation for quality that keeps bringing its
customers back to its door.
Customer Service: Providing knowledgeable and friendly assistance to each of its customers is a
practice that every staff member of DMart follows. In addition, the company has been improving
its overall shopping experience by implementing measures such as extended hours of operation
and home delivery of orders.
Location: The DMart team does A lot of research before every store’s opening. The locations are
usually near residential areas with low traffic to make shopping convenient for customers. This
has not only increased their foot traffic but also improved brand visibility.
Product Range: While sticking to its core business of satisfying the basic needs of its customers,
DMart manages to offer a variety of products such as food, clothing, and household items. The
product range keeps expanding with the changing demands of consumers.
DMart adopts a mix of digital and traditional advertising techniques to reach out to its target
audience. On one hand, they provide newspaper ads to create awareness about their products,
deals, coupons, and discounts. They also have a chatbot called ‘DMart Ready’ on Facebook
Messenger to clear queries of their customers and also implemented a loyalty program with
cashback and discounts to reward their frequent customers.

They have managed to avoid the glamour and fancy outlook of stores at shopping malls since
they target middle-income households. This also has helped them reduce unnecessary
expenditures and avoid high risks in sales. Further, DMart is not interested in expa”ding
geographically. Adopting the ‘Word-of-Mouth’ marketing technique ensures they don’t spend too
much on marketing.

Better School Brighter Futures is one of the CSR (Corporate Social Responsibility) efforts that
DMart is engaged in. Through this campaign, DMart has built an ecosystem to help students
understand concepts more easily. Improved education, research facilities, networking
possibilities, and mentoring are a part of this.

Impact and Awards

The retail industry of India is growing at a rapid pace. With consumers’ buying patterns and
behaviours changing steadily, there is an increasing demand for a wide range of products. DMart
offers a wide range of high-quality products at affordable prices by focusing on the core business
of providing essentials such as food, clothing, and household products.

DMart’s store-ownership model helps in reducing overhead costs. The store operates on its
‘High-Volume Low-Margin’ business model by sourcing products directly from the
manufacturers. By offering products for basic day-to-day needs, DMart has achieved consistency
in business, thereby avoiding the risk of high demand fluctuations.

DMart was one of the significant Indian firms to make a record opening on the NSE (National
Stock Exchange) when it posted its IPO as Avenue Supermarts Ltd. The company achieved a
$39,988 crore valuation when the stock market closed on March 22, 2017. DMart was ranked 33
on BSE’s list of recorded organizations with a market capitalization of $114,000 crore on 21 st
November 2019.