In a strategic move to bolster its presence in Mumbai's bustling real estate landscape, Avenue Supermarts, the parent company of the renowned DMart supermarket chain, has made a significant acquisition. The company has purchased a sprawling 1.2-acre plot in the suburb of Chandivali for a staggering sum exceeding Rs 117 crore.
The transaction, which was officially registered on May 6, involved a stamp duty payment of Rs 7.03 crore, as disclosed by documents accessed through the real estate data analysis platform CRE Matrix. The move underscores Avenue Supermarts' commitment to expanding its footprint through strategic property acquisitions.
The acquired land currently hosts a ground-plus-one industrial structure and falls within the industrial zone. However, Avenue Supermarts envisions transforming it into either a retail shopping center or a commercial building, aligning with its growth strategy.
In addition to the existing floor space index (FSI) available on the plot, the company has secured an additional 0.5 FSI, granting permission for further development. This acquisition marks another milestone in Avenue Supermarts' expansion journey, aimed at enhancing its retail infrastructure.
Despite attempts to solicit comments from Avenue Supermarts and its promoter Radhakishan Damani, responses were not received at the time of publishing.
With a steadfast focus on store expansion, Avenue Supermarts aims to maintain its target of opening 40 outlets annually, as previously communicated to analysts. Recently, the company inaugurated a new store in Abrama, Gujarat, elevating its total count to 367 supermarket outlets.
Avenue Supermarts distinguishes itself from peers by opting for outright real estate acquisitions instead of relying on conventional leasing models. By the close of the 2023-24 fiscal year, the company boasted a total retail business area spanning 15.1 million square feet, with the addition of 41 stores covering 1.8 million square feet during the period.
Financially, Avenue Supermarts continues its robust performance, reporting a net profit of Rs 2,536 crore for the fiscal year 2023-24, reflecting growth from Rs 2,378 crore in the preceding year. Revenue surged to Rs 50,789 crore from Rs 42,840 crore, highlighting the company's resilience and market strength.
Established in 2002 with its maiden store in Powai, Mumbai, Avenue Supermarts has expanded its presence across Maharashtra, Gujarat, Andhra Pradesh, Madhya Pradesh, Karnataka, Telangana, Chhattisgarh, the National Capital Region, Tamil Nadu, Punjab, and Rajasthan. The company operates under various brands, including DMart, DMart Minimax, DMart Premia, DHomes, and Dutch Harbour, catering to diverse consumer needs across regions.
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