This Indian tycoon got richer under Covid 19 lockdown

Team Udayavani, Apr 8, 2020, 1:57 PM IST

Mumbai: The Coronavirus pandemic has severely affected economies of countries worldwide. Production, manufacturing and other activities have come to a halt due to the imposition of the lockdown and stock markets continue to remain volatile.

According to a report the net worth of India’s richest business man Mukesh Ambani tanked by 28 per cent in the last two months. However while most businesses have taken a hit during this lockdown another person has reportedly emerged richer. The net worth of Radhakishan Damani, who controls Avenue Supermarts Ltd is said to have increased by 5 percent this year to USD 10.2 billion as per a report by Bloomberg Billionaires Index.

Interestingly competitors of D-mart namely Future Group has not shared the same fortune. On the contrary, shares of Future group has declined by nearly 80 per cent this year.

So how has D-mart managed to surge ahead while well-established players have faced the brunt of this lockdown. While panic buying by customers can be cited as one of the reasons for the entity to do well under the given circumstances, the other strategies adopted by the group such as giving customers fewer choices of no-frills products, negotiating hard with its vendors and avoiding any advertising expense helps in the money-making.

As of now the group has been managing to ensure an uninterrupted supply of essentials at its stores but how long this will sustain remains to be seen.

Moreover to ensure that end consumers don’t have to stand in queues to buy their groceries amid the lockdown restrictions, D-mart has started sending its trucks to societies in metro cities which will help boost its sales further.