As India’s retail landscape undergoes a significant transformation, one brand is quietly leading the charge in modernizing grocery shopping across rural and semi-urban India — Star Localmart, part of the Sanjay Ghodawat Group. With a vision to bring the convenience, reliability, and product diversity of modern supermarkets to the country’s smaller towns, Star Localmart is steadily building a strong footprint in markets that are often underserved by organized retail.

Festive Cheer Across Rural India

This festive season has been particularly promising for Star Localmart. “We’ve seen encouraging demand across our rural and semi-urban stores this festive season,” said Srinivas Kolluru, Business Head, Star Localmart. 

“Customers are gravitating towards curated gifting options, hampers, dry fruits, and chocolates, while basket sizes are increasing as shoppers combine essentials with gifting.”

According to Kolluru, there’s been a noticeable shift in consumer behavior — more shoppers are opting for organized retail over traditional kirana stores for festive shopping. The convenience of gifting solutions, attractive store displays, and the availability of branded products have made Star Localmart a preferred destination, particularly in Tier II and III cities.

Strengthening Footprint with Strategic Acquisitions

Earlier this year, Star Localmart announced the acquisition of Bengaluru-based DusMinute, a move that added 40 stores to its growing network. This acquisition has not only strengthened its southern footprint but also accelerated its entry into key urban and peri-urban micro-markets.

 “The acquisition of DusMinute brings operational assets, strong local partnerships, and an immediate customer base that we are integrating with our supply chain and sourcing strengths,” explained Kolluru. “Combined with our organic growth, this move positions Star Localmart among the largest regional retail players.”

An Ambitious Roadmap: 3,000 Stores by 2030

Star Localmart’s growth ambitions are bold yet calculated. Currently operating 170 stores across multiple regions, the company has laid out a clear roadmap to expand to 3,000 stores by 2030.

“We are prioritizing expansion across Maharashtra, Karnataka, Andhra Pradesh, Telangana, and Goa,” said Kolluru. “Our goal is to achieve Rs 5,000 crore in revenue over the next five years, supported by a mix of compact neighborhood supermarkets in smaller towns and larger formats in district hubs.”

Tailoring Modern Retail for Rural India

Star Localmart’s success lies in its ability to localize — not just in terms of product assortment, but also in store design, pricing, and customer experience. The brand’s supermarkets are built to mirror the shopping habits of rural and semi-urban consumers.

“We tailor our stores to reflect how our consumers actually shop — intuitive layouts, high visibility for daily essentials, and festive corners that inspire gifting,” shared Kolluru.

The brand’s product mix is strategically divided into 50 percent national SKUs, 20 percent regional products, and 30 percent local items, ensuring that trust, familiarity, and value go hand in hand. This balance helps the brand serve both everyday needs and seasonal indulgences, while also promoting local entrepreneurship.

“Local and regional items often become customer favorites — driving loyalty, supporting local entrepreneurs, and helping us stand out from larger national chains,” he added.

Navigating Challenges, Seizing Opportunities

Expanding into Tier IV towns and beyond presents its own set of challenges — from lower population density and higher logistics costs to limited organized retail presence. However, Star Localmart views these very challenges as opportunities.

“Local markets are increasingly open to modern retail experiences and branded assortments,” said Kolluru. “We maintain efficiency through a cluster-based supply chain model, regional warehouses, local vendor tie-ups, and technology-led inventory planning.”

This model ensures freshness, cost control, and operational profitability even in smaller markets. The focus on a 30 percent local SKU mix further strengthens the connection with the community while keeping logistics agile.

Technology and Policy: Enablers of Growth

Technology plays a pivotal role in Star Localmart’s journey toward scale and efficiency. From real-time inventory tracking and POS-based analytics to cluster-level assortment optimization, the company is using data and digital tools to enhance decision-making and customer experience.

“Technology is central to our next phase of growth,” emphasized Kolluru. “We’re strengthening our supply chain visibility and using data-driven insights to optimize assortment and improve product availability.”

He also highlighted the role of evolving GST frameworks — particularly Consumer GST 2.0 — in shaping the future of rural retail. Simplified compliance mechanisms, he believes, will enable more small suppliers to participate in organized retail, benefiting both customers and local economies.

Consistent Growth and Strong Consumer Connect

Despite the dynamic retail environment, Star Localmart continues to demonstrate steady growth. The company’s 170-store network — including DusMinute outlets — has seen consistent year-on-year expansion, with rising footfalls across Tier II and III markets.

“We’ve seen consistent growth driven by stronger consumer engagement and deeper penetration in non-metro markets,” Kolluru noted. “Our average footfall and FY25 revenue projections are over 4 lakh, and we’re confident of maintaining this upward momentum.”

Leveraging Group Synergies for Competitive Advantage

As part of the Sanjay Ghodawat Group, Star Localmart benefits from a wide array of synergies that bolster its operations and competitiveness. “Being part of the Sanjay Ghodawat Group allows us to leverage shared infrastructure, logistics efficiencies, and supplier networks that strengthen our cost and supply advantages,” explained Kolluru. This association enhances the brand’s credibility and operational muscle, enabling better sourcing terms, wider supplier reach, and stronger consumer trust.

Looking Ahead

Star Localmart’s long-term vision is clear — to become India’s most trusted neighborhood retail brand across smaller towns. While its current focus remains firmly on groceries and essentials, the brand is gradually eyeing adjacent categories to enhance customer value.

“We’re exploring adjacent segments like home care, personal care, and ready-to-eat products — areas that complement our existing portfolio,” said Kolluru. “The larger goal is to make modern retail accessible, familiar, and relevant for every Indian household.”