Radhakishan Damani: Meet the billionaire behind DMart's incredible success
Radhakishan Damani's journey from a ball bearing business to launching the retail giant DMart is truly remarkable.
Born into a Marwari family, Radhakishan Damani had little interest in his father's small-scale stockbroking business. He even dropped out of college and started a ball bearing business. However, at 32, his father's untimely death led him to take over the family business. Realizing the limitations of just broking, he ventured into trading.
Radhakishan Damani's early fortune was significantly influenced by Harshad Mehta. While Mehta manipulated stock prices, Damani capitalized on the fluctuations through short selling. By the time the scam was exposed, Damani had amassed substantial wealth. He later admitted that delaying his stock sales by even a week would have led to bankruptcy.
The Harshad Mehta era's volatile trading environment made Damani realize the need for a long-term approach. Inspired by Chandrakant Sampat, he shifted to value investing, preferring stocks he could hold for 5-10 years, a strategy similar to Warren Buffett's.
After years of trading, Damani aspired to build his own company. He took a 6-7 year hiatus from the market, using his earnings to buy inexpensive land in Mumbai's Powai, which would become the foundation for DMart. Acquiring the Apna Bazaar franchise in the early 2000s provided him with retail operational insights. Two years later, he launched the first D-Mart store in Mumbai under the Avenue Supermarts banner.
Damani holds a diverse stock portfolio, including stakes in VST Industries, United Breweries, India Cements, and more. He also owns the Radisson Blu Resort in Alibaug. His early investment in VST Industries at around Rs 85 has multiplied manifold, with the stock now trading at over Rs 3152.
The late Rakesh Jhunjhunwala, a renowned investor, considered Damani his mentor in the stock market. He credited Damani for teaching him the ropes of trading and navigating market fluctuations.
Damani's long-term vision is evident in DMart's business model. Instead of leasing, he focuses on owning store spaces, saving significant rental costs. He also maintains a debt-free approach and ensures timely payments to vendors, fostering strong relationships and avoiding stock shortages.