Jan 12, 2025 01:25 PM IST
Avenue Supermarts Ltd. named Anshul Asawa as its chief executive officer-designate after the Indian operator of retail chain DMart missed profit estimates.
Avenue Supermarts Ltd. named Anshul Asawa as its chief executive officer-designate after the Indian operator of retail chain DMart posted profit that missed estimates amid competition from e-commerce companies expanding their rapid deliveries business.
Asawa, a 30-year veteran of Unilever Plc, will join as CEO-designate in March and formally take over from Ignatius Navil Noronha from February 2026, the Mumbai-based company said in a filing Saturday. Noronha, who owns 1.95% of DMart, will continue as CEO in the interim. The company has also elevated two executives as senior management personnel.
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The company’s third-quarter profit rose 6.5% to 7.85 billion rupees ($91 million), missing analysts’ estimates for a ninth straight quarter. That’s also the third consecutive quarter of slower profit growth. DMart’s shares declined 13% in 2024, compared with a roughly 9% gain in the benchmark NSE Nifty 50 Index amid investor concern that online grocery stores like Swiggy Ltd.’s Instamart and Zomato Ltd.’s BlinkIt are taking market share.
Founded by stock market trader Radhakishan Damani at the turn of the century, DMart is facing “increased intensity in discounting in the FMCG (fast moving consumer goods) category and the consequent impact to high turnover per square feet stores in metro towns,” the company said in a statement Saturday. “However, this quarter the impact has relatively reduced versus the previous quarter.”
The changes in senior management at DMart are being made at a time retail store chains in India are facing increased competition from digital platforms. While food delivery companies are expanding their quick-commerce business, the e-commerce giants like Amazon.com Inc. are starting rapid delivery service.
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Asawa, who is the country head of Unilever in Thailand and general manager for the home care business unit in Greater Asia, has had stints in Asia and Europe, according to DMart.
The company said its home delivery business far exceeds its pick-up point sales contribution and in several towns it now only provides home delivery. “We are seeing significantly more demand for home delivery compared to pick-up point and hence we continue to align our business to that extent,” the retail chain operator said. Sales at DMart Ready, its online business, climbed 21.5% in the nine months ended Dec. 31.
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