D-Mart IPO opens today: Five things to know about the super market retail chain

Here are some facts to know about D-Mart before it goes public on Wednesday.

• D-Mart is among the most profitable food and grocery retail chains in India. The firm clocked a profit of Rs 300.21 crore in fiscal 2016 on a revenue of nearly Rs 8,600 crore. Its profit after tax (PAT) rose 50 per cent year-on-year. Since FY 12, the firm has logged 100 per cent rise in its revenue every two to three years. According to Technopak, in fiscal 2016, D-Mart was the largest and the most profitable F&G retailer in India. Its total store count rose from 75 in fiscal 2014 to 110 in fiscal 2016.
• The firm expanded its retail network from one store in 2002 to 112 stores as of September 15, 2016. As of September 15, 2016, it also has 21 distribution centres and six packing centres. As part of its growth strategy, D-Mart is planning to further enhance its existing market position in Maharashtra and Gujarat, increase its store network in certain southern states including Andhra Pradesh, Telangana and Karnataka and in northern India.
• For the year ended March 31, 2016, stores in Maharashtra and Gujarat together contributed 81.40% to its total revenue. Furthermore, 18 out of 21 distribution centres are located in Maharashtra and Gujarat.
• D-Mart follows everyday low price/everyday low cost (EDLP/EDLC) strategy similar to global retailer Walmart and does not conduct discount festivals to raise its sales. The firm says: One of our key strengths has been our ability to offer our customers value-retailing and daily low prices and consequently greater daily savings. This has been possible in part due to our strong supplier and vendor relationships and our pricing strategies. Our ability to maintain and enhance our competitiveness through our EDLC/EDLP pricing strategy will have a direct effect on our business, financial condition and results of operations.
• The firm owns real estate for majority of its stores. D-Mart says that owning the real estate for majority of our stores helps it control fixed costs per store and helps in execution of EDLP/EDLC strategy effectively which it continously plans to implement in the future.