The secret of DMart Success- Hawk Eye focus on costs
Updated: Feb 15, 2022
[ONLY FOR LAUGHS]
One of the many successful attributes of successful promoters has been their focus on cost control. Azim Premji has been known to own a preowned Mercedes and would be seen switching off lights after employees left. Jeff Bezos’s first desk was made of a wooden door and amazon warehouses are knows for acute cost control. Radheshyam Damani, DMart Promoter, has known to lead a simple life and seen always dressed in white. However, this changed recently with the acquisition of a Bungalow by him for a meager of INR 1,001 cr.
DMart Success Mantra
The reason for DMart success has been the companies tight focus on costs across operations. I have been able to put together the below list of cost-cutting measures adopted by DMart to ensure that they are able to provide their customers – the best value. Policies of D-Mart:
Employee-funded cafeteria: All employees are expected to collect 5 sachets of sugar and 2 sachets of sauce, 2 straws, and 6 paper napkins whenever they visit a restaurant and deposit it at the DMart cafeteria. Employees of the rank of Vice president and above are expected to get oregano and chili flakes sachets. Last year, the company was able to have zero budget allocation to the above ingredients. Some surplus was also generated by selling off excess sugar which was added to the bonus kitty of employees.
Meal Reimbursement policy: No reimbursements will be done for food during outstation travel. The company has a list of temples that provide free food: Tirupati, Iskcon, Vaishno Devi , Golden Temple, etc. This list will soon be updated with names of Gurudwaras providing Langar. They are also tying up with Akshaya Patra for across the country free food. In case of compulsion to go to a restaurant, employees are expected to visit unlimited thali restaurants and the entire group shares a thali.
Outstation hotel accommodation policy: Travel to outstation for meetings is only be approved for employees who can share details of relatives or friends in that city. So that they can get free accommodation. Marwari employee’s travel is auto-approved as they have relatives in every city.
Late-night transport: Company will not be reimbursing late-night transport charges. They recommend you to place an order for some products from your home for DMart and take a free ride back with Swiggy, Dunzo, Wefast .
Nature-friendly meetings: All client meetings to be done at public parks and at waterfronts. Employees are permitted to be magnanimous and offer snacks like Peanuts/Bhel for clients to consume and in case of big-ticket clients also offer them cutting tea and bun maska.
Modular Furniture: All employees should have the same comfort in their office that they get while they are at home. Employees are therefore asked to get their own personal chairs and desks to suit their body needs.
PS: I am taking consultancy offers for explaining in detail the cost-cutting policies. The first call I expect is from Azim Premji.
About the Author
I have spent the last 15 years (2004-2019 ) as a Sell-side Equity Analyst covering sectors like Media, Telecom, and Consumer MidCaps. I was at SBI capital markets from 2004-2007 and at ICICI Securities from 2007-2019.
I was rated by Institutional Investor as the best analyst for Media – India for 2014-16. I am a Recreational Poker player and was the winner of the First ever WPT Indian Main event. I have dabbled a bit in Theatre. I wish I can watch more movies and read more books. Hope to travel around the globe.