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Avenue Supermarts, the company that operates the popular national supermarket chain D-Mart, continues to expand its real estate holdings with its recent acquisition of 50,000 square feet of commercial space spread across four floors in a residential tower located in Mumbai's Kandivali suburb. This strategic move involved the purchase of over 17 commercial units spanning from the ground floor to the second floor of the tower. The acquisition, which amounted to over Rs 88.74 crore, is intended to be used for the establishment of a hypermarket store.
Avenue Supermarts secured these properties from the project developer, Gauri Land Developers LLP, and other parties. In addition to the property purchase, the company has also paid a stamp duty of Rs 4.04 crore for the registration of this transaction, which took place on August 24. As part of the deal, Avenue Supermarts will gain exclusive access to 44 car parking slots within the Gauri Excellency Tower.
Earlier in the current week, Avenue Supermarts inaugurated a new store in Morbi, Gujarat, marking another milestone in its expansion strategy. This new addition brings the total number of supermarket outlets operated by the company to 333. During the financial year 2022–23, Avenue Supermarts successfully added 1.9 million square feet of retail space across various locations in India. Impressively, the company's sales per square foot reached Rs. 31,000 during this period.
Avenue Supermarts follows a unique approach when it comes to acquiring real estate assets for its retail expansion. Unlike many other retail chains that rely on a standard leasing model, the company typically opts to outright purchase the properties it needs to support its growth. Founded in 2002, Avenue Supermarts opened its first store in the Powai suburb of Mumbai. Over the years, it has steadily expanded its presence and currently operates 333 stores across various states in India, including Maharashtra, Gujarat, Andhra Pradesh, Madhya Pradesh, Karnataka, Telangana, Chhattisgarh, NCR, Tamil Nadu, Punjab, and Rajasthan. The Mumbai-based company owns and operates several brands, including D Mart, D Mart Minimax, D Mart Premia, D Homes, Dutch Harbour, and more.
In other news, Metro Cash and Carry stories, previously accessible only to B2B customers and wholesalers will now open doors to all customers. In December 2022, Mukesh and Isha Ambani led- Reliance Retail acquired a 100% stake in Metro Cash & Carry, for an estimated Rs2,850 crores. After recently acquiring the requisite regulatory approvals, RRVL is now integrating the business with their won.
Metro AG first launched its operations in India 2003. The brand sells products such as fruits, groceries, electronics, household goods and apparel to a wide list of customers including hotels, restaurants, small retailers, offices, etc. Due to certain FDI regulations, Metro AG could only service B2B clientele. It has a total of 31 distribution centers across India.
Reliance Retail made another significant acquisition in March last year it took over possession of a premises that housed over 900 Future Retail stories citing non-payment of rent. The company then went on to re-brand the stories as Reliance outlets. Reliance Retail is the largest organized retailer in India today. With several more retail acquisition said to be in the pipeline, the company looks well intended to maintain its aggressive growth streak.
The recent wave of acquisitions and substantial investments in retail and real estate ventures reflects a significant shift in market sentiment. Indian billionaires are showing a remarkable level of confidence in these sectors, and their strategic moves are indicative of a broader trend. This newfound optimism in retail and real estate underscores the potential for growth and profitability within these industries in the Indian market.
As Indian entrepreneurs continue to make substantial investments, it not only drives the expansion and transformation of these sectors but also positions India as a dynamic and attractive market for both domestic and international investors. The quiet confidence displayed by these billionaires suggests a belief in the long-term potential of the Indian retail and real estate markets, and their actions are likely to have a far-reaching impact on the country's economic landscape. Overall, these developments underscore the resilience and adaptability of India's business landscape and signal a positive outlook for the future of the retail and real estate sectors in the country.
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