DMart Operator, Avenue Supermarts Fined ₹28.28 Lakh For Construction Non-Compliance

Avenue Supermarts, which runs the DMart retail chain, has been imposed with a penalty of ₹28.28 lakh by the Greater Bengaluru Authority. This was due to non-compliance in connection with construction activities at one of its project sites.

The company has already informed that this won’t have any adverse financial impact to its business or other activities.

For a company of Avenue Supermarts' scale, the sum is negligible. But with DMart steadily expanding its store footprint, compliance at project sites is worth watching.

Strong Growth Prospects

D-Mart has always taken a starkly different approach. From its initial days, it has focused on perfecting the store economics first.

It avoids the expense on store frills and this patient approach has helped it avoid the debt trap and lure of unsustainable growth. Today, D-Mart enjoys a market capitalisation of ₹2,558 billion.

The company’s management expects faster network growth with 10-15% annual store expansion, led by North India this year. It is building capacity for quicker rollout, with DMart Ready focusing on large metros and a deeper presence in key cities.

At 11:43 am on Wednesday, shares of Avenue Supermarts were trading at ₹3,925, up ₹15.40 or 0.39% on the National Stock Exchange (NSE).

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