Retail chain Vishal Mega Mart has not lost any customers to online or e-commerce competitors despite the growing presence of new players in the market, its chief executive officer Gunender Kapur said.
He said Vishal Mega Mart operates a differentiated business model, offering products at significantly discounted prices—something online competitors may struggle to replicate.
In the FMCG segment, more than 50 percent of Vishal Mega Mart’s revenue comes from its in-house brands, which Kapur highlighted as a key differentiator.
He cited the example of the company’s chocolate cream biscuit, produced by the Australian multinational Magnetis. Vishal Mega Mart sells it at Rs 10.99 while other retailers offer similar products at Rs 36.
Similarly, while other retailers price 70-gram noodles at Rs 90, Magnetis noodles are available at Rs 60 at Vishal Mega Mart. “When customers compare, they see they are paying a significant premium for these products in other stores versus the prices we offer,” he said.
Growth plans
Moving ahead, the company plans to grow its offline and online business rapidly, in terms of same-store sales growth and new store expansion, Kapur said.
While the online channel remains a focus, Kapur clarified that there are no plans to slow down the offline business. “We will give our best effort to grow both channels and strike the right balance,” he added.
Avenue Supermarts, a competitor of Vishal Mega, Mart has seen clear disruption from online players and e-commerce retailers. Neville Noronha, CEO and MD of Avenue Supermarts, had said, “We clearly see the impact of online grocery formats, including DMart Ready, in large metro DMart stores which operate at a very high turnover per square feet of revenue.”
Vishal Mega Mart, backed by Kedara Capital, has set the price band for its Rs 8,000-crore initial public offering at Rs 74-78 per share.
Vishal Mega Mart IPO will remain open for public subscription from December 11 to 13. The bidding for anchor investors is scheduled for December 10, a day before the offer opens for retail and institutional investors.Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
