After acquiring the retail assets of the Future group and obtaining extensive investments, Mukesh Ambani’s Reliance Retail is now the most powerful organized retail player in India.
However, a Commercial standard The report said that DMart founder Radhakishan Damani is also preparing to defend his retail territory.
The Damani retail chain has strategically planned to increase operations, including the installation of more stores, increased e-commerce operations and presence among consumers.
However, Reliance-Future’s combined grocery revenue is estimated to be 2.5 times that of DMart, Credit Suisse analysts told the publication. In addition to that, DMart is also predominantly present only in the western part of the country, while Reliance, on the other hand, has a much broader reach with more than 12,000 stores across the country. The Future-Reliance deal will further boost Reliance’s presence, adding another 1,800 stores to its range.
Additionally, Reliance has accumulated a number of investments over the past few weeks. So far, Reliance Retail has raised Rs 18.6 billion in four rounds, offloading 4.25 percent of the stake to financial investors.
For DMart, the key to the expansion lies in the fact that the organized retail space is still in its nascent stage in India, giving it a significant margin.
DMart will likely add about 60 stores in the next two years, based on management feedback and an assessment of the company’s track record, the agency said, citing experts. While DMart is expected to set a solid course ahead offline, given its strong balance sheet and execution strengths, it may face significant challenges in the online model, where it has lagged.
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