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Is D-Mart ready for the e-commerce battle?

India’s most profitable retailer is making a play for the online grocery market, but it could be a case of too much, too soon

21/05/18

Harveen Ahluwalia

Over the last 18 months, Mumbai-based Avenue Supermarts has been discreetly experimenting with the e-retail space

The company, which runs the D-Mart supermarket chain, is the largest Indian retailer by market capitalisation

However, the online grocery business is tough because the margins are lower and the products are perishable

D-Mart’s push into a space that is known to drive losses may not offer any silver lining in the near future

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Here is what a retail consultant told me a year ago: “The next war of e-commerce will be fought over food and groceries.” His words have proved prophetic. With China’s Alibaba investing $146 million in BigBasket, Amazon committing $500 million to food retail, and, most recently, US giant Walmart’s $16 billion Flipkart buy, the online grocery war is no secret.

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