Avenue Supermarts that owns and operates the DMart supermarket chain has purchased a 1.2-acre plot in Mumbai’s Chandivali suburb for over Rs 117 crore, as the company continues to acquire properties as part of its growth strategy.
This land currently houses a ground-plus-one industrial structure. The plot falls under the industrial zone and the company is looking to develop it as either a retail shopping centre or a commercial building.Apart from the existing floor space index (FSI) available on this plot, the company has purchased 0.5 additional FSI, or permission to develop 26,000 sq ft, from the civic authority.
The billionaire Radhakishan Damani-promoted company has paid a stamp duty of Rs 7.03 crore for the transaction that was registered on May 6, according to documents accessed through real estate data analysis platform CRE Matrix.
Avenue Supermarts and Damani did not respond to emails seeking comment till the time of going to press.
The company’s management had last year told analysts that it was planning to maintain its target of opening 40 outlets in a financial year, as store expansion has been a key focus area for the retailer.
Last week, the company opened a new store at Abrama in Gujarat’s Valsad, taking its total number of supermarket outlets to 367.
Avenue Supermarts usually picks up real estate assets needed for its retail business expansion on an outright basis, unlike other retail chains that base their expansion strategy on a standard leasing model.
At the end of 2023-24, the company had a total retail business area of 15.1 million sq ft, with the addition of 41 stores spread over 1.8 million sq ft during the fiscal year. Its revenue from retail business area was Rs 32,941 per sq ft.
For the financial year 2023-24, the company reported a net profit of Rs 2,536 crore, compared with Rs 2,378 crore the previous year. Revenue rose to Rs 50,789 crore from Rs 42,840 crore.
Avenue Supermarts opened its first store in 2002 in the Powai suburb of Mumbai. It currently operates stores in Maharashtra, Gujarat, Andhra Pradesh, Madhya Pradesh, Karnataka, Telangana, Chhattisgarh, the National Capital Region, Tamil Nadu, Punjab and Rajasthan.
The Mumbai-headquartered company owns brands like DMart, DMart Minimax, DMart Premia, DHomes and Dutch Harbour.
