“This is not a business that’s going away anywhere — it’s not fastest-finger-first, where if you capture the market first, you win. In any country, retail is 30-35 per cent of its GDP. I don’t think any retailer thinks of saturation. On the granular level, even in a city like Greater Bombay where we have several stores now, we could get to 75-100 stores and still see opportunities. This is an industry that has headroom for growth for 40-50 years in India. You only have to run your business well”
This summarizes the reasons for market excitement: if a retailer get its act right (which is very very tough) growth is abundant. It has 150 stores in India and the CEO is talking of 75-100 stores in Bombay itself in future(and may be a similar number in NCR). And this is a business which can grow in smaller cities too(every Budget conscious home likes cheaper groceries). So large is the opportunity size on which they are sitting on.
Disc: invested, highest allocation to portfolio