Under Noronha's leadership, DMart's market capitalisation soared 500%

Neville Noronha, managing director and chief executive officer of Avenue Supermarts, which houses the brand DMart, announced on Saturday that he would not be extending his contract.

 

Under Noronha’s leadership, Avenue Supermarts, one of India’s largest hypermarket and supermarket chains, has seen its market capitalisation soar to Rs 2.39 trillion from Rs 39,988 crore at its listing in 2017. He has been instrumental in transforming DMart from a company with just five stores to one with over 380 outlets.

 

The stock price of the company, which went public in FY17, more than doubled from the issue price. During his tenure, Avenue Supermarts closed FY24 with revenue crossing Rs 50,000 crore, while its net profit stood at Rs 2,536 crore for the financial year.

 

Before joining Avenue Supermarts in 2004, Noronha worked as a sales executive at Hindustan Unilever. He is credited with introducing best practices such as paying suppliers within 48 hours of delivery. According to the company’s stock exchange filing, Noronha owns a 1.95 per cent stake in Avenue Supermarts, valued at Rs 4,680 crore at Friday’s closing price.

 

According to the company’s annual report, his gross salary stood at Rs 5 crore in FY24. 

 

In an exchange filing, he said DMart is a business model having a multidecadal runway for growth. "If we stay the course of simplicity, efficient costs, happy employees, deep value to customers and, most importantly, not doing anything else, we will always remain relevant for a long time to come. I remain committed to a smooth transition till my tenure ends and available even after that for any counsel the company may need from time to time.”

 

The company had appointed Anshul Asawa the CEO-designate from March 15.

 

C B Bhave, chairman of the board of directors of Avenue Supermarts, praised Neville’s vision and hard work in building the company to this scale today, saying he was a leader who saw the big picture but never lost the eye for detail.