A FEATURE ARTICLE ON RK DAMANI

                                                         A FEATURE ARTICLE

                                                                    -Ratan Rao

Radhakishan Damani

-“warren buffet of India’ and ‘retail king of India’

DMart Owner RK Damani

D-Mart Owner RK Damani Success Story: Radha Kishan Damani or RK Dami is a Mumbai based billionaire investor, businessman, and owner of the mega-retail chain stores “D-Mart” in India. The veteran investor Rakesh Jhunjhunwala considers him as his guru (mentor) in the Indian share market. Here are some interesting facts about RK Damani

 

Current Age: 66 (Born 1954)

Net worth: $15.5 Billion

Occupation: Trader, Investor, Businessman

Status: Self-Made Billionaire

 

According to Forbes’s latest Richest Indian’s list, RK Damani is the 7th richest person in India, with a net worth of over $15.5 Billion, which is equivalent to over Rs 116,200 Crores.

RK Damani does not consider himself as a highly educated person. He dropped out of college while pursuing B Com from the University of Mumbai. Before entering the stock market, RK Damani had a small ‘ball-bearing’ business. However, after the death of his father, he started working as a stockbroker in his family business. He was 32 at that time.

 

Therefore, unlike most tech entrepreneurs who start their startup journey in their 20s, RK Damani was a little late to join this journey, still was able to make it big.

— Stock Market Career

Although RK Damani started his career as a stockbroker, he soon understood that if he wants to make real money from the market, then he needed to trade his own money in the market, instead of being just a broker. And soon he started trading his in the Indian stock market.

 

RK Damani made a lot of profits from his trading in stocks. He was a very flexible trader and believed in making profits using different market swings. For example, during the Harshad Mehta scam, he made a lot of money by ‘Short-selling’ the stocks, which was not common at that time. However, after getting influenced by value investor Chandrakant Sampat, later RK Damini changed his approach. He shifted to long-term value investing.

 

RK Damani made a lot of money by investing and holding multi-baggers stocks. A few best-performing stocks from his portfolio are VST Industries, Sundaram Finance, Indian Cement, and Blue Dart. He also invested in VST Industries at an average of Rs 85 and it is currently trading at Rs 3,400. Further, India cement gave a return of +115% to his porfolio.

 

Some other companies in his portfolio are Food & Inns Ltd, Simplex Infrastructure Ltd, Mangalam Organics, Spencer’s Retail, BF Utilities, Prozone Inty Properties, Kava Ltd, Astra Microwave products, etc.

 

RK Damani latest stock portfolio 2020 june tradebrains

 

 

 

 

   — D’Mart Owner – The career as a                     Businessman

RK Damani has been very interested in consumer retails for a long time. That’s why he opened D-mart in 2002 with one store in suburban Mumbai. Nevertheless, being a value investor, this was a very planned move by him.

 

In March 2017, D-Mart went public by offering its IPO, under the name of the parent company- ‘Avenue Supermarts’. The IPO was a big hit. Avenue supermart offered its shares to the public at a  price of Rs 299 and got listed at Rs 604 after over-subscription. (Also read: 10 secrets behind the stunning success of D-Mart’s Radhakishan Damani). Currently, the shares of Avenue Supermarts are trading at Rs 2,372 per share, as of 30 April 2020.

 

Further, by 2019, D-Mart has over 176 stores spread across Maharashtra, Andhra Pradesh, Telangana, Gujarat, Madhya Pradesh, Chhattisgarh, Rajasthan, National Capital Region, Tamil Nadu, Karnataka, Daman and Diu, and Punjab. Dmart stores generated a total revenue of Rs 19,916 Crores in the year ending March 2019.

 

— Other Facts about RK Damani

RK Damani considers himself as both a trader and an Investor. He trades in market swing and invests when he’s getting long-term value.

 

Personally, Mr. Damani lives a very simple life. He is known as ‘Mr. White and White’ because most of the time he wears a simple white shirt and white trousers. Besides, he avoids media and public gatherings.

 

That’s all for this RK Damani success story. I hope this article will motivate you towards your own success journey. Let me know whose story should we cover in the next article by commenting below. Happy Investing.

 

Many of you already heard of the success story of Radhakishan Damani, Indian entrepreneur, investor, and India’s 7th richest man who is a founder and Dmart.

 

However, his road to fame was never easy. Let us read a success story of RK Damani and his entrepreneurial journey from Dalal Street to a billionaire. We hope you are going to enjoy the success story.

 

 

 

     Who is Radhakishan Damani?

 

Radhakishan Damani was born on 15 March 1954 to an Indian Marwari family, born and brought up in Bikaner, Rajasthan. RK Damani is one of the few self-made billionaires in the country and comes from a humble beginning.

 

His background naturally led him to have an inclination towards business in general. RK Damani dropped out of his Bcom – Bachelor of Commerce from the ‘University of Mumbai’ midway to start his first stockbroking business.

 

Radhakishan Damani, the founder of the mega-retail chain stores “D-Mart” in India, is a Mumbai based Entrepreneur, businessman, and billionaire investor. Radhakishan is considered the king of the Damani retail business.

 

         Stock Market Career

 

Although Radhakishan Damani started his career as a stockbroker, he soon understood that if he wants to earn money from the market, then he needed to invest and trade his own money in the stock market, instead of being just a stockbroker. And soon he started stock trading his in the Indian stock market.

 

He made a huge profits from his stock trading practice. RK Damani believed in making profits using different market swings. He was a very flexible trader.

 

RK Damani earns handsome money by investing multi-baggers stocks. A few best-performing stocks from his portfolio are Century textiles, Indian Cement, VST Industries, TV Today Network, Blue Dart, Sundaram Finance, 3M India, Jubilant FoodWorks, etc.

 

At the age of 32, after the death of his father, RK Damani started the stockbroking business.

 

His journey from Dalal Street, to entrepreneur, to businessman

 

Famously known as Mr. White and White. He started his career as an investor in the stock market in the year 1980. Before entering the stock market, Radhakishan Damani had begun his career with a small ‘ball-bearing’ trading business.

 

In 2001, After reaching such great heights, he suddenly quit the stock market business and decided to enter the retail industry.

 

He launches Dmart supermarkets and hypermarket chain. After this, he announced the IPO of D-Mart in the year 2017.

 

This company has now become the 18th most valuable company in the country. Its market cap is more than Bajaj Finserv and Nestle.

 

 

 

 

              What is DMart?

 

Dmart is a one-stop supermarket and hypermarket chain in India which was first started in 2000 in Powai, Mumbai by R K Damani.

 

The company has its headquarters in Mumbai. D’Mart offers a wide range of personal and basic home products under one roof.

 

Each DMart supermarket store stocks home utility products – including Toys & Games, Stationery, beauty products, food, toiletries, bed and bath linen, garments, kitchenware, home appliances, Footwear, and more.

 

The brands D Mart Premia, D Mart, Dutch Harbour, D Mart Minimax, D Homes, etc are brands owned by ASL.

 

The main objective of D’Mart is to offer customers good products at a great value. Today, DMart has a well-established presence in Andhra Pradesh, Maharashtra, Karnataka, Telangana, Gujarat, Madhya Pradesh, Tamil Nadu, Punjab, Chhattisgarh, NCR, and Rajasthan.

 

The supermarkets and hypermarket has more than 196 locations across the country. DMart stores supermarket chain is owned and operated by Avenue Supermarts Ltd. (ASL). Dmart’s success is focused on three things: Employees, Vendors and Customers!

 

The founder of D Mart, Radhakishan Damani, has become the 2nd richest person in the country after Mukesh Ambani.

 

 

RK Damani lives a very simple life and most of the time he wears a simple white shirt and white trousers and avoids public gatherings and media coverage. He does not consider himself a highly educated person.

 

 

 (10) SECRET BEHIND RADHAKISHAN DAMANI

(1) Keep an eye on the long term

Like Warren Buffett, Damani too has been a value investor who would take canny view of the long term. When he turned an entrepreneur, he retained the same approach and built D-Mart without relying on any quick shortcuts. For instance, he never leases property for his stores but buys it. In the long term, it saves him from a big rental outgo. This was a key factor behind the profitability of D-Mart.

2. Small is big

Damani started small and did not hurry to expand. Low scale gave him a better control of supply chain and allowed him to focus on profitability right from the beginning. In the 15 years of its existence, D-Mart has turned a profit each year.

 

3. Value your people

Damani began with buying a franchise of Apna Bazar. That was when he began building personal relations with vendors and suppliers. He values both and they never let him down. The stores never go out of stock.

 

4. Buy low, sell cheap

Damani knew what he was doing: offering people consumer products of daily use at heavy discounts. That became his only goal. One of his methods was to pay his suppliers and vendors within days instead of weeks which was the industry norm. They provided the goods at a cheaper rate to him in lieu of early payment. He passed on the cost benefits to his customers, which ensured consistent footfall.

 

5. Go local

Even though D-Mart is the most successful grocery retail chain of the country, Damani has confined it to the western states. One reason is his reliance on local supplies instead of elaborate supply chains.

 

6. Go slow

Though D-Mart started 16 years ago, it still has 119 stores in a few states, a small number compared to those owned by Ambani and Biyani. Instead of rapid expansion, Damani adopted a slow pace which gave him his focus on profitability. That's why D-Mart has not shut a single store since it started and generates higher per store revenues than the stores of Ambani or Biyani.

 

7. No frills

Damani knew the purpose behind his enterprise was to supply consumer goods at lower prices. He did just that, without wasting his energy on frills. His stores have limited range of products and have simple decor. People come for just one thing: lower prices. The trait reflects in his own appearance. He wears only white shirt and white trousers, for which he is called "Mr White and White".

 

8. Ignore the herd

Damani had learnt and practised with success the art of not following the herd while he was an investor. As an entrepreneur, he has the same approach. There have been so many new-fangled ideas in retail, such as various e-commerce trends, which he did not give any importance. Fashions or trends cannot influence the man who knows what he wants and how he can get it.

 

9. Avoid credit

Credit and delayed payments in retail business are risky because they can badly impact your supplies and costs. Damani keeps away from credit and pays sooner than his suppliers expect.

 

10. Let your work speak

Damani keeps a low profile which affords him total dedication to his work. His slow and silent rise in a depressed sector is a mark of his single-minded focus on work. He has rarely given an interview to a TV channel or a newspaper.