Radhakishan Damani , founder and veteran investor of retail chain Dmart , is again in the news. Damani has bought 28 luxury apartments in Mumbai for Rs 1238 crore. It was described as a big deal in real estate. This is not the first time that Radhakishan Damani has invested in the real estate sector. Earlier in April 2021, he along with his brother Gopikishan Damani had bought a property worth Rs 1001 crore in Malabar Hill, Mumbai.
Damani, who stays away from the world of glare, is mostly seen in white paint-shirts, that's why people call him Mr. White and White. Let's know, how was the journey of his company Dmart.
Started investment from 5 thousand
Born in 1954 in a Marwari family in Mumbai, Radhakishan Damani's father Shiv Kishan Damani used to be a stockbroker. Radhakishan Damani enrolled in Mumbai University to study B.Com, but after studying for one year, he left the college and started his own business.
Ramesh Damani started the business with ball-bearings in the initial days, but closed this business due to losses. Meanwhile the father died and later tried to start something new afresh. That's why he started trading in the stock market with Rs 5,000. His younger brother was already in this business. That's why it was easy to understand. In the initial phase, he started investing in small companies.
First store opened in Mumbai
By 1990, he had earned crores of rupees only by investing. Planned to enter retail business with this amount. In 1999, he started a franchise of the market in Nerul, Navi Mumbai, but this model was not successful. In 2002, he started a store named Dimart. It was opened in Powai area in Mumbai. Presently the company has 238 stores. Apart from this, wherever the company opens a store, it is its own, not a rented one. In this way the company does not have to pay extra rent. This model was adopted for 238 stores across the country.
The mentality of the people was understood before the opening of Dmart. The vendors were taken care of and prices were kept here up to 6% lower than other stores. There was never any rush to open stores. Avoided keeping too many range of products in the stores.
There was a time when 1000 stores of Future Group were opened in the country. Reliance Retail had 1,450 stores. Compared to these two, DMart had only 65 stores. But the company's strategy worked. Gradually the number of their stores increased to 258.
Profit tripled in 5 years
The company has created records of success year after year. In 2017, the IPO of DMart's parent company Avenue Super Mart was listed. The company's annual profit in 2016-2017 was Rs 483 crore, which increased to Rs 1,165 crore after five years in 2020-2021.
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