Avenue Supermarts Limited CC-Jun24.pdf · 2024-07-30
Hi. Thank you so much for taking my question. Hi, Neville. I have two questions, one on DMart Ready. It’s a very basic question. Is DMart Ready consumer seeking convenience at the margin or more value? Basically, where I'm getting at is because there is a clear -- you also mentioned that the convenience pie, which is -- consumer is trying to sort of get a service, is willing to pay for it. But my question is, in the last four or five years, you've built DMart Ready, which is clearly showing that EBITDA margin is still minus 2% to minus 3%. So operating model, even if some scale up has happened, profitability is still elusive. Is there an opportunity for price discrimination here between physical store to onlin e? And if it is profitable and stands on its own feet, then your ambition to grow faster may change as well. I mean, what I'm trying to ask is that, is it the limitation because you want to give value, but convenience is a conflict? How do we think about t his? Why not pursue that as a convenience opportunity which can price discriminate and get more profits out of it and hence, can grow faster and can service more customers who want that convenience? I just want to get a thought on that?
So, what we could change that this EBITDA margin starts to move in a positive direction?