Radhakishan Damani wiki search reveals that he is the founder of one of the premium chains of supermarkets ‘D-Mart’ in India. If we check the Radhakishan Damani portfolio 2020, then we can understand the increasing valuation. Whenever a major disruption, such as a pandemic, hits the world suffers and collapse occurs in various industries which leads to the downfall of the stock market. However certain industries benefit, on the contrary, to the freefalling graph of the rest of the world.
As the world deals with an unimaginable and unprecedented spread of infection of COVID-19 on such a massive scale, the economies have been suffering. This particularly started with the outbreak of Coronavirus in the manufacturing hub of the world, China. The shutdown of the market in China led to the disproportion in the supply and demand chain of the global economy. With the outbreak of COVID-19 in the rest of the world, subsequently, leading to the collapse of the entire consumer and producer cycle. But in the case of any such events, close to an apocalyptic scenario, particularly concerning the health of the population, the Pharmaceutical and the nutrition industry witnessed tremendous growth in their profit margins as people start stalking up on requisites of everyday life.
Who is Radhakishan Damani?
Radhakishan Damani is one of the best examples of successful first-generation investors. He started his career as a business trader but due to the financial crisis at home, following his father’s death, he decided to invest in the stock market. Over the following years, he closely observed the functioning of the stock market evaluating its risks and benefits. During these years, he closely followed the stock market strategy of Manu Manek. He would eventually go on to become one of the most successful stock market players in the country.
Personal life of Radhakishan
Radhakishan was born in a Marwari family in 1954. He has a brother named Gopikishan. He pursued his higher studies at the University of Mumbai but left halfway in order to become a businessman.
Career of Radhakishan
The period between the 1980s and 1990s is considered to be one of the darkest phases for the Indian stock market. Radhakishan Damani formed a nondescript group called ‘triple Rs’ with fellow investors to tackle Harshad Mehta, the mastermind of 1992 security scam, in purchasing Apollo tires shares. Harshad Mehta’s security scam affected Damani bitterly and he was on the verge of bankruptcy when he started investing in multiple MNCs and consumer companies.
With the rapid improvement in technology during the early 2000s, he adopted new market strategies. Later, he decided to quit the stock market and invest in the retail business. He founded India’s third-largest chain of superstores named “D-Mart”.
The D Mart owner is the second richest person in India only next to the richest industrialist in the country Mukesh Ambani, who happens to be the richest person in India as well as entire Asia. Radhakishan Damani net worth is 17.8 billion dollars as reported in February 2020.
The Story of D-Mart
D-Mart is the third-largest chain of hypermarkets in India run by Avenue supermarkets Limited. In the financial year 2019, it had a revenue of 2.71 billion dollars and net income of 133.85 million dollars. It has 196 stores located in 72 cities in 11 states of India
- On 22nd March 2017, the D-Mart’s market value rose to 39988 crore rupees making it the 65th most valuable company in India. Its headquarters are located in Mumbai.
- On 21st November 2019, the market value of Avenue Supermarket Limited rose to 114000 crore rupees making it 33rd the largest company in India.
- On 25th February 2020, Forbes India declared the D-Mart owner as of the second richest person in India with a net worth of 17.8 billion dollars
Damani gets Richer by D-Mart
As India was placed under three-week lockdown by the government of the country, majority of the population consisting of 1.3 billion Indians got involved in panic buying the essentials items which made Damani, the owner of D Mart network, to amass one of the most profitable gains ever in the history of the company. Currently, as reported by the Bloomberg billionaire index, Damani’s net worth increased the most among 12 richest Indian businessmen.
The model of D-Mart is based on providing the essential items to the people at an affordable price by negotiating with the vendors and avoiding the cost of advertising. As the consumers look forward to hoarding the staples for the period of lockdown, the low prices only provided the benefit of choice to D-Mart from the Indian consumers. This has made Radhakishan Damani net worth 17.8 billion dollars.
However, this growth is expected to slow down after the nationwide lockdown is uplifted. With the slowdown of the transport network of trucks, both within and in between the states, the D-Mart shelves are expected to go empty in the long run if India continues the lockdown.
The second-largest retail stores’ chain in the country run by Future Groups which has 1300 stores recorded a significant decline in its profit margin due to its mounting bankruptcy.
The billionaire donates 100 crores to the PM relief fund
India has seen a rapid increase in the number of donations made by rich persons during the quarantine. All the big names amongst the rich person during quarantine in the country starting from Mukesh Ambani to Ratan Tata have made significant donations for the country’s welfare in this difficult time.
The D-Mart owner made the donation of 100 crore rupee to National PM relief fund and 55 crores to various state relief funds in order to deal with the worsening situation of the COVID-19 outbreak in the country. He made these contributions through the group company Bright Star Investments.
The company run by the D-Mart owner issued the statement saying, “India is witnessing unprecedented times following the spread of COVID-19. We are fully supportive of swift actions taken by central, state governments and local bodies to protect the public. Each of us needs to do our best to protect our communities and fellow countrymen”.