Radhakishan Damani : The only Indian tycoon getting richer even amid COVID-19

Among all the business tycoons that are facing the wrath of time and watching their business sinking, amid COVID-19, the only Indian tycoon Radhakrishna Damani is the one whose net worth is unscathed can thank nation’s hoarders with millions scrambling to stock up on staples amid the world’s biggest isolation effort.

Damani’s supermarket chain, known for its thrifty cost structure, gained from panic buying of household essentials after India decided to place its 1.3 billion people under a three-week lockdown last month.

The low-cost model will hold Avenue Supermarts’ D-Mart stores in good stead even after the panic hoarding for staples cools down once the lockdown is lifted. The supermarket chain makes money by giving customers fewer choices of no-frills products, negotiating hard with its vendors and avoiding any advertising expense.

D-Mart’s rivals have not benefited as much under the same circumstances. Future Group, which runs India’s second-largest retail chain by revenue and has over 1,300 stores across the country, saw shares of its publicly-traded retail unit nosedive 80% this year amid mounting debt woes.

Avenue Supermarts’ and Damani’s prospects are bright as long as the supply chain for India’s fast-moving consumer goods are not disrupted. With trucks coming to a near-standstill, any extension of the lockdown can potentially empty out D-Mart’s shelves.

For now, Damani’s stores are managing to refill their racks. There are very few listed retailers that are better placed than Avenue Supermarts to offer “a hedge in this crisis.”

“They cater to the rising demand for consumer staples and they have used their cash flows over the years to invest in a robust supply chain,” said Vikraman P.N. of Finnoviti Consulting.