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Mint
7 hours ago
- Business
- Mint
DMart eyes higher margins via private labels as quick commerce grows
Bengaluru:Avenue Supermarts Ltd, which operates the DMart retail chain, is expanding its private label portfolio beyond food staples and packaged groceries into home and personal care (HPC) categories, as it looks to improve margins amid rising quick commerce competition and sluggish consumer spending. This move mirrors a broader trend in value retail, where private labels are increasingly being used to drive affordability and protect margins. Private labels are in-house brands often sold at lower prices and are owned and sold exclusively by a retailer. 'Fast moving consumer goods (FMCG) companies are expandingtheir product lines and trying new things, like HUL is cutting back on palm oil, and Nestle teaming up with a drug company for a new recipe," said an equity research analyst working in a Mumbai-based brokerage firm who did not want to be named. Dmart's rival Tata Trent Star Bazaar has built a successful private label category which has more than doubled its revenue from ₹1,798 crore in FY23 to ₹2,699 crore in FY25. In categories where private labels are offered, they now contribute over 70% of sales, up from around 60% two years ago. Vishal Mega Mart, which has a strong presence in tier-II and tier-III cities, reported revenue of ₹10,716.3 crore in FY25. While the company does not break out private label contribution in its financials, industry estimates suggest that 65-70% of its sales come from in-house brands across apparel, footwear, and general merchandise. DMart has started expanding its private labels in categories such as detergents, beverages, soaps, and biscuits under various brand names such as 'Star Bright", 'Sparkle", and 'Bisky Bites", which compete with similar product lines from some of the country's largest fast-moving consumer goods (FMCG) players, including Hindustan Unilever (HUL), Nestlé, and ITC. Mails sent to DMart did not elicit a response until press time. 'DMart is attempting to increase its gross margins by adding private labels in more categories (HPC, foods); this may only partly offset QC-induced footfall and cost pressure," according to a Kotak Institutional Equities Report written by Garima Mishra and Ishaini Swain on 23 June. Private labels According to the report, these private labels now occupy 20-30% of shelf space in select product categories at DMart outlets. The retailer previously restricted private labels to its staple product category under the 'Premia" brand, which was started in 2002. According to the report, these private labels are priced about 30-70% lower than some of the branded FMCG products. This underscores the retailer's vision to sell everyday products at 'everyday low prices" to Indian consumers. For example, its private label detergent, Star Bright, costs ₹72 per kg, while P&G's Tide costs ₹125 per kg. Similarly, the retailer's mango juice under the Go Fruit brand sells at ₹34 compared to Parle Agro's Frooti. Founded by billionaire Radhakishan Damani in 2000, DMart opened its first store in Powai, Mumbai, in 2002. Today, it is India's largest retail chain, with a market capitalisation of ₹2.8 trillion. The company went public in 2017 and has built its success by offering consistently low prices. DMart pays wholesalers upfront, often ahead of industry payment cycles and secures deeper discounts, which it passes on to consumers. The company is currently navigating a phase of transition, facing twin challenges: a change in leadership and intensifying competition from quick commerce players. Longtime chief executive officer Neville Noronha, who has been instrumental in building DMart into India's most valuable retail chain, is expected to step down by 2026. He will be succeeded by Anshul Asawa. 'It seems like Asawa might have a significant challenge ahead given the high benchmark that Noronha has set," said the analyst based in Mumbai. The retailer's aggressive push into private labels also coincides with the rapid rise of quick commerce players such as Zomato's Blinkit, Swiggy's Instamart, and Zepto, which have been making inroads in several cities, especially in tier-II and tier-III cities, where DMart has limited presence. According to the Kotak report, there are over 100 cities where one or more quick commerce platforms have a presence, but DMart does not. 'Quick commerce is outpacing DMart Ready, which operates more like traditional e-commerce with one- to two-day delivery. In contrast, quick commerce players deliver within minutes," said the analyst. Increasing coverage DMart currently has stores across 152 cities, while Blinkit operates in 194 cities, followed by Instamart and Zepto that are present across 116 and 73 cities.'In urban and metro markets, quick commerce has high penetration, but DMart is present even in places where Q-commerce hasn't reached, so I think it will be able to keep up with rising competition," said Pratik Prajapati, equity research analyst at Ambit. Despite its value positioning, DMart's profitability has come under strain in recent years. According to the company's FY25 financials, the company's Ebitda margin, a profitability metric that indicates the company's operating performance, declined from 8.5% in FY23 to 7.6%, even as gross margins remained steady at 14.8%. 'The main reason for this drop is due to rising employee costs," said the analyst. The employee cost now accounts for 6% of revenues, up from 5.4% two years ago. 'The private labels tend to be cheaper, and if the consumers are satisfied with the quality of the products, the expansion will deepen further," said the analyst. 'In the long term, this can impact the margins of some of the branded FMCG goods." The private label push is also supported by DMart's ongoing store expansion. DMart added 50 stores in FY25 and plans to open about 75 new stores over the next three years, according to the Kotak report on 23 June 2025. States like Uttar Pradesh and Odisha are expected to be key focus areas. The company recently entered Agra, marking its first expansion into the state beyond Ghaziabad. The company clocked a revenue of ₹59,358 in FY25, a 16.9% increase over the previous fiscal year. The company's net profit jumped 6.7% from ₹2,536 crore in FY24 to ₹2,707 crore in FY25. 'Private labels not only improve margins but also give customers more choice within a price band," said Prajapati. 'If customers are satisfied with the quality, they are likely to stick with the brand over time." 'As they gain acceptance, we're already seeing revenue pressure on traditional FMCG brands. Brand cannibalisation will likely continue as competition intensifies", said the analyst who did not want to be named.
Yahoo
a day ago
- Sport
- Yahoo
Alabama plucks elite TE Mack Sutter out of Illinois
Alabama got its man. The Tide got great news on Thursday night when four-star tight end Mack Sutter announced his commitment to the program. Alabama pulled the star tight end out of Illinois and away from his final group of Illinois, Ohio State and Ole Miss. Ahead of his decision Sutter told Orange and Blue News what it was about the Tide that had his interest. Advertisement "The guys down there really value me,' Sutter said. 'They think a lot of me, and I really appreciate that. I like what Coach DeBoer is doing there". Alabama has been trending to land the Illinois native for a long time. They've been consistent in his recruitment and playing in the SEC has always been a strong selling point for Sutter. MORE FROM INDY: Highlights and analysis | Teams that should be pleased | Gorney Awards | Biggest surprises | Flip watch | QB analysis RECRUITING INTEL: Mid-South | Florida | West | Southeast | Midwest RIVALS FIVE-STAR MEDIA DAY: All the news, notes and interviews | The All-Lobby Team | How solid are the commitments? | Roster Advertisement RIVALS FIVE-STAR INTERVIEWS: Jaden O'Neal | Trae Taylor | Chase Calicut | Samu Moala | Jake Kreul | Felix Ojo | Peyton Houston | CJ Sadler | Richard Wesley | JaReylan McCoy | Carter Scruggs | Nolan Wilson | Carson Sneed | Derrek Cooper | Devin Carter | Jayden Wade | Joel Wyatt | Kaden Henderson | Nick Abrams He also likes coach Kalen DeBoer and Ryan Grubbs history of producing top offenses. This is a big blow to in-state Illinois. Despite putting together one of it's best classes ever, the Illini are struggling to land elite talent. The four-star tight end from Dunlap, Ill., less than two hours from Champaign, heard a great message from the Illinois staff throughout his recruitment. It was clear that he was a top target and the Illini did a great job recruiting him. But in the end it was too much to pass up with the opportunities in Tuscaloosa. SHARE YOUR THOUGHTS WITH ALABAMA FANS AT
Time Magazine
a day ago
- Business
- Time Magazine
TIME100 Most Influential Companies 2025: Procter & Gamble
Among consumer goods companies, P&G's recipe for success is steadiness. Instead of striving for disruption, P&G sharpens execution, strengthening its core brands by introducing more convenient Swaddlers 360 diapers for Pampers in May 2024 and partnering with Marvel's Deadpool franchise to promote Old Spice around the new movie's release in July. The maker of Crest, Tide and other staples of daily living has paid a quarterly dividend to shareholders for 135 consecutive years, and raised the amount annually for 69 consecutive years—a rare achievement that highlights P&G's strategic foresight and ability to weather economic challenges. The strategy has led P&G to pull ahead of arch-rival Unilever, more than doubling its stock price over the past decade. From January to December 2024, P&G share prices saw a 17% spike as it invested in digital marketing in China and shored up its supply chain. In June 2025, however, the company announced it will cut 7,000 jobs over the next two years as it navigates what its executives call an 'unpredictable' geopolitical environment.
Irish Independent
20-06-2025
- Entertainment
- Irish Independent
From shore to studio as Wicklow forager creates art from nature
Samuel and Kasia guided a group along the Bray coastlie, to gather seaweed and coastal plants to bring back to the studio and create a traditional form of photographic print. The process in the studio of creating some truly unique pieces of art was all captured by photographer, Leigh Anderson. In describing the journey from shore to studio, Samuel said it is all about 'merging various art forms to tell the stories of the seaweeds, coasts and streets, he gathers, wades and walks'. As a guide, the emphasis is on 'marrying ancestral skill within the modern landscape'. 'Foraging fosters an intimate relationship with our environment,' Sam says. 'We tap into an ancestral activity. We become part of the flow rather than spectators of the outdoors. We begin to truly care for our environment – the beach we comb, the forest we walk, the derelict land we trespass into, the small slices of wilderness that remain. We start to stand up for it. This is where I believe environmental action truly begins. 'We began our day (in the pouring rain – but with open minds) down at the south end of bray beach. We gathered coastal plants, seaweeds and stories along the walk. Then back to the Mermaid for some foraged nibbles and drinks – meadowsweet kombucha, sleabhac crisps and sugar kelp hummus and nettle seed pesto. Then we went into the studio where we prepared our solution to create photographic images using only the foraged plant material.' Merging their knowledge and experience, Kasia and Samuel bring together their passion for creating and learning with the elements – seaweed, plants, light and shade. "Foraging for nourishment and creating artwork, is an invaluable way to reconnect and therefore care for the environment we come home to,' Sam says. The next workshop 'The Communal Tide', will take place in September. Keep an eye on for confirmation of dates.
NDTV
20-06-2025
- Business
- NDTV
"Human Mind Will Always Be Superior To Any Kind Of AI": Piyush Goyal
London: Union Minister Piyush Goyal said that most Indians are convinced that the human mind will always be supreme and superior to any kind of artificial intelligence (AI) and assuaged concerns of job losses due to the emerging technology. He made these remarks during his interaction at the 'Future Frontier Forum' held in London on Thursday. "Artificial intelligence is an area that India is absolutely going to adopt. It's going to bring it to our working. We do not see this as an area of concern that will lead to job losses," the minister said at the event. He added, "Given our talent in the country, I think we should open up many, many more avenues to help the world in terms of data, in terms of decoding new possibilities with AI. So we are only looking at it as a need to retrain our people, to re-skill our talent, but adopt it." "So at the end of the day, most Indians are convinced the human mind will always be supreme. To get the best of AI, the human mind has created it and will be able to tame it and ultimately will be superior to any kind of AI. That I am absolutely sure," he said. Piyush Goyal is on a two-day official visit to the United Kingdom from Wednesday. The visit is aimed at holding key meetings related to the India-UK Free Trade Agreement (FTA). This high-level visit highlights India's growing efforts to strengthen its trade and investment partnership with the UK. It comes shortly after the India-UK FTA was announced by the Prime Ministers of both countries last month. On Thursday, the minister also held a productive meeting with Rachel Reeves, Chancellor of the Exchequer, UK. In a social media post, the minister said, "Discussed avenues for collaboration in financial frameworks, sustainable finance, and unlocking new trade opportunities to further strengthen the India-UK economic partnership." He also had an engaging discussion with Oliver Prill, CEO of Tide, a business financial platform based in the UK. "With India's massive strides in the digital world, we discussed the fintech ecosystem, digital empowerment, and fostering SME-led growth across both economies," Mr Goyal shared.
