BUSINESS OVERVIEW

Jay Ambe Supermarkets Limited was originally incorporated as a private limited company under the name Jay Ambe Supermarkets Private Limited. On February 25, 2025, it was converted into a public limited company and renamed pursuant to a shareholders’ resolution passed at an Extraordinary General Meeting on December 24, 2024.

The company traces its roots to June 2016, when M/s Jay Ambe Trading was established as a partnership firm. Following an alteration deed executed on July 02, 2018, the promoters—Mr. Jignesh Amratbhai Patel, Mr. Rutwijkumar Maganbhai Patel, Mr. Bhikhabhai Shivdas Patel, and Mr. Harshal Daxeshkumar Patel—along with other partners, joined the firm. Subsequently, after incorporation on November 23, 2020, the business of Jay Ambe Trading was fully transferred to the company through a Business Sale and Purchase Agreement dated January 25, 2021.

The retail journey under the brand name City Square Mart began in August 2018, with the opening of the first store in Kudasan, Gandhinagar. Within just six years, the company expanded to 17 stores across Gujarat, establishing itself as a fast-growing retail chain with a total retail space of 96,876 square feet. The growth has been led by Mr. Jignesh Patel, who brings over 19 years of experience in the multi-brand retail sector.

The promoters established the company with the objective of trading in a diverse product range including FMCG goods, groceries, home textiles, home décor, clothing and apparels, toys, gift articles, footwear, and household items through supermarkets and related retail formats. The company emphasizes enhancing the retail shopping experience, offering competitive prices, wide product choices, and customer satisfaction as a core focus area.

Business Model and Franchise Operations

The business operates on a lease rental model, strategically selecting high-visibility retail spaces with easy customer accessibility. Operations are carried out through both company-owned stores and franchise models. The franchise structure includes:

• COCO (Company Owned, Company Operated)

• FOCO (Franchise Owned, Company Operated) – where the franchisee owns the business, while the company manages daily operations and receives percentage-based sales revenue per square foot.

• FOFO (Franchise Owned, Franchise Operated) – where the franchisee owns and operates the outlet, bearing all costs while paying royalty fees to the company.

Out of 17 stores currently operational, 10 stores are company-owned and 7 are franchise-operated, located in Rajkot (Amin Marg and Mavdi), Bhuj, Mehsana, New Chandkheda, and Ognaj. Among these, Bhuj and New Chandkheda follow the FOCO model, while the remaining franchise stores operate under the FOFO model.

Diversified Revenue Streams

In addition to retail operations, the company generates income through:

• Shelf rentals for displaying third-party products.

• Paid branding and marketing services within store premises.

• Shop-in-shop counters and promotional displays.

• Vendor partnerships with deputed sales staff for in-store promotions.

The company maintains strong relationships with over 1,700 manufacturers and suppliers, including FMCG firms, apparel brands, artificial jewellery producers, and toy manufacturers. Purchases are made directly from original manufacturers, authorized distributors, and dealers, primarily on advance payment or cash-on-delivery terms, enabling favorable pricing and timely deliveries.

Technology and Operations

A centralized procurement system is managed from the regional office in Kudasan, Gandhinagar, closely tracking market demand and consumer responses. Orders are placed strategically based on demand analysis. The company utilizes an ERP system for procurement, sales, inventory management, and administrative functions, which ensures efficient operations and real-time insights into store performance.

For inventory storage, top shelves of retail outlets are used as additional storage, eliminating the need for separate warehouses.

Product Portfolio

City Square Mart outlets offer a wide and diversified product mix catering to multiple consumer segments, including:

• FMCG (Food and Non-Food items)

• Packed and Loose Groceries

• Household and General Merchandise

• Consumer Durables

• Luggage and Home Textiles

• Men’s, Women’s, and Kids’ Garments

• Footwear, Gift Articles, Toys, and Stationery

• Imitation Jewellery and Lifestyle Products

Through its rapid expansion, diversified business model, strong supplier base, and customer-centric approach, Jay Ambe Supermarkets Limited has established itself as a key player in Gujarat’s organized retail sector with significant potential for further growth.

As of March 31, 2025, the company employed a total of 115 individuals. The Bank of India serves as the company’s banker.

INDUSTRY ANALYSIS

Market Scenario and Global Comparison

The Indian retail sector is undergoing a remarkable transformation, driven by shifting socio-economic dynamics, rapid digital adoption, and evolving consumer preferences. Over the years, India has positioned itself as a thriving consumer-driven economy, now standing as the 4th largest retail market globally after the US, China, and Japan. This has made it one of the most attractive destinations for global retailers. The country ranked 1st in Kearney’s Global Retail Development Index (GRDI) 2023 out of 44 key markets, and 16th in the FDI Confidence Index 2023, while securing the 2nd position among emerging markets after China.

For analytical purposes, the retail industry in India is segmented into organized and unorganized formats, with further division based on product categories such as FMCG and groceries, consumer durables, clothing & footwear, personal care, and electronics. Distribution channels span traditional brick-and-mortar outlets and e-commerce platforms, with formats ranging from local kirana stores and drug stores to hypermarkets, supermarkets, and malls.

Historical Growth and Contribution

The retail sector plays a pivotal role in India’s economy, contributing nearly 10% to the national GDP and employing about 8% of the total workforce. Growth has been propelled by rapid urbanization, rising disposable incomes, a growing middle class, and expanding consumer spending. Government reforms aimed at improving ease of doing business, strengthening the digital ecosystem, and expanding rural connectivity have further accelerated this momentum, attracting foreign investors in large numbers.

Despite a severe setback during Covid-19 in 2020, when consumer demand shifted away from discretionary spending and even essential goods saw lower footfalls, the sector bounced back quickly. The revival of e-commerce post lockdown, along with widespread vaccination drives and government support, boosted recovery. According to the Retailers Association of India, the organized retail sector grew by 34% in FY 2022-23, surpassing pre-pandemic levels.

Looking ahead, the retail sector is projected to grow from an estimated USD 750 billion in 2022 to USD 1.1 trillion by 2027 at an 8% CAGR, and further expand to USD 2 trillion by 2032 at a 13% CAGR between 2027-2032.

Market Segmentation and Organized vs Unorganized Retail

India’s retail industry continues to be dominated by the unorganized sector, which contributes nearly 85–88% of the market through kirana stores, general stores, and small convenience shops. However, even this segment is witnessing transformation with the digitization push.

The organized retail sector, valued at USD 110 billion in 2022, is growing rapidly and is expected to reach USD 230 billion by 2030. This growth is being fuelled by increasing internet penetration, digital maturity, and expanding infrastructure. Organized players are moving beyond metros and Tier-1 cities into Tier-2, Tier-3, and even Tier-4 towns, leveraging lower rental costs and rising local consumer power.

Malls remain the largest organized retail format, offering consumers multi-brand outlets, food courts, entertainment zones, and secure, convenient shopping experiences under one roof. The trend of experiential retail is also gaining ground, with customers now valuing personalized services, interactive shopping, and technology-driven engagement as much as the product itself. According to Deloitte India and the Shopping Centre Association of India (SCAI), malls and shopping centres are expected to grow at a CAGR of 17% between 2022 and 2028, outpacing the overall retail industry.

Retail Leasing and Expansion

India has emerged as one of the most promising destinations for retail real estate investment. In 2023, the country witnessed record leasing activity of 7.1 million sq. ft., a 47% y-o-y rise, with newly launched malls contributing nearly 30% of the absorption. Fashion retail led the segment with 36% of total leasing, followed by food & beverage (12%), luxury retail (9%), and consumer electronics (6%). Industry estimates suggest that around 60 new malls, adding 23.25 million sq. ft., will open across India during FY 2023-24.

E-Commerce and Digital Influence

The e-commerce revolution has reshaped Indian retail, backed by booming internet usage, affordable smartphones, and low-cost data services. The share of e-commerce in the overall retail market has grown from just 3% pre-pandemic to 9% in 2022, and is projected to reach 17% by 2030, with the total e-commerce GMV expected to hit USD 350 billion.

The pandemic accelerated online adoption, pushing retailers towards omni-channel strategies, mobile commerce, and online platforms even for traditional kirana stores. Innovations such as cash-on-delivery, hassle-free returns, and strong logistics infrastructure have enhanced trust and boosted digital sales. The e-grocery market, valued at USD 2–3 billion in 2020, is projected to reach USD 10–12 billion by 2025, growing at nearly 50% annually.

Growth from Tier-2 and Tier-3 Cities

A major growth driver for organized retail is the rising demand from Tier-2 and Tier-3 cities, where incomes are rising, infrastructure is improving, and consumer aspirations are evolving. Consumers in these cities now have access to modern shopping formats, branded products, digital payments, and loyalty programs, bridging the urban-rural consumption gap. The younger, tech-savvy demographic in these regions is accelerating the adoption of organized and digital retail formats.

Competitive Landscape and Future Outlook

The Indian retail sector is highly diverse and competitive, with unorganized players competing on proximity and personal relationships, while organized players leverage technology, data-driven insights, and immersive shopping experiences. The rise of e-commerce and omni-channel formats has intensified competition, while malls, hypermarkets, and specialty stores are emerging as preferred destinations offering integrated retail and leisure experiences.

Going forward, discretionary spending on categories such as apparel, electronics, and personal care will grow significantly. India’s young population (65% under 35 years), combined with rising household spending projected at USD 3.6 trillion by 2025, will drive demand. Future growth will hinge on personalization, supply chain efficiency, digital infrastructure, and omni-channel adaptability.

In the long term, India is expected to evolve further into a consumer powerhouse, with the retail industry projected to reach USD 2 trillion by 2032, growing at 10.3% CAGR between 2022-2032.

BUSINESS STRENGTHS

1. Strong Vendor Relationships
Jay Ambe Supermarkets Limited has established long-term alliances with over 1,700 direct manufacturers and suppliers across India, creating a strong and reliable supply chain. These partnerships are based on mutual trust and cooperation, enabling consistent access to high-quality products. Such a wide vendor network allows the company to negotiate better pricing, which supports competitive rates for customers while ensuring quality standards.

Additionally, the breadth of vendor relationships facilitates sourcing of a diverse product portfolio, ranging from everyday essentials to niche items. This not only ensures higher customer satisfaction but also strengthens the company’s positioning as a one-stop destination for varied shopping needs.

2. Wide Range of Products
The company offers a comprehensive product portfolio designed to cater to different customer needs and preferences. The range includes FMCG products, apparel, footwear, household items, toys, artificial jewellery, crockery, gift articles, stationery, and more. This extensive product mix attracts a broad and diverse customer base, ensuring availability of daily essentials and lifestyle products under one roof.

The wide assortment also enhances opportunities for cross-selling and up-selling. Customers purchasing groceries or crockery can be offered complementary products such as kitchen accessories or tableware, while fashion-conscious shoppers exploring apparel may be introduced to premium product lines, increasing both sales and customer engagement.

3. Experienced Management Team
The company benefits from an experienced management team led by its Board of Directors, Key Managerial Personnel, and Senior Management. This leadership group plays a crucial role in business strategy, innovation, technology integration, and expansion planning.

At the forefront is Chairman and Managing Director, Mr. Jignesh Amratbhai Patel, who brings over 19 years of experience in the retail and supermarket industry at both national and global levels. The leadership team is further strengthened by professionals from diverse fields, including supply chain, retail operations, technology, management, and marketing, supported by senior managers with significant industry expertise.

4. Customer-Friendly Refund Policy
A flexible and customer-friendly refund policy enhances customer trust and confidence in making purchases. The ability to return or exchange products easily reduces hesitation and builds long-term relationships.

This policy not only improves customer satisfaction but also contributes to brand loyalty and positive word-of-mouth, as customers who feel valued are more likely to return for future purchases and recommend the brand to others.

5. Track Record of Profitability and Financial Growth
Jay Ambe Supermarkets Limited has demonstrated a consistent track record of profitability and financial performance. Revenue from operations grew from ₹3,268.96 lakhs in FY 2023 to ₹4,735.28 lakhs in FY 2025, showcasing strong growth momentum.

Profitability also strengthened significantly, with Profit After Tax (PAT) rising from ₹35.30 lakhs in FY 2023 to ₹275.37 lakhs in FY 2025. This consistent growth reflects robust operational performance, customer demand, and effective management execution.

BUSINESS STRATEGIES

1. Expansion of Store Network
Jay Ambe Supermarkets Limited currently has a strong presence across Gujarat and aims to broaden its retail footprint by entering new cities and towns, while simultaneously strengthening its base in existing locations. The company is actively evaluating Tier-2 and Tier-3 cities such as Anand, Jamnagar, Palanpur, Junagadh, Mansa, Bhavnagar, Gandhidham, Bhuj, Anjar, Bhachau, Nadiad, Valsad, Navsari, Godhra, and Lunawada as part of its future expansion strategy.

Location selection remains a critical factor in this growth plan. Before venturing into new geographies or introducing new product categories, the company conducts in-depth research on market dynamics and demographic characteristics to ensure alignment with customer demand.

2. Enhancing Sales Volume through Customer-Centric Approach
A core strategy is to maintain value-for-money pricing while delivering a comprehensive product range and superior customer service standards. By leveraging data-driven insights into consumer spending patterns and evolving behaviors, the company intends to regularly introduce new products tailored to customer needs.

All stores are designed to provide a family-friendly shopping experience, featuring air-conditioned environments, functional layouts, computerized billing systems, and flexible payment options including credit and debit cards. This focus on convenience and customer satisfaction is expected to maximize sales and strengthen brand loyalty.

3. Strengthening Supply Chain and Operational Efficiency
Efficient supply chain management is viewed as critical to long-term sustainability. The company’s supply chain strategy encompasses planning, merchandising, sourcing, vendor management, logistics, quality control, pilferage control, and replenishment. Key initiatives include:

• Refining store operating systems based on store performance insights and customer feedback.

• Deepening supplier relationships through stronger cooperation and coordination.

• Expanding and upgrading existing stores to improve inventory and supply management efficiency.

• Opening new stores in strategic, cost-effective locations to support supply operations.

• Continuously adopting best industry practices.

4. Driving Same-Store Sales Growth through Multi-Pronged Initiatives
To maximize performance from existing stores, the company has identified several growth drivers:

• Expansion of Product Portfolio: Introduction of organic foods, gourmet products, private-label items, and seasonal/festival-specific products to widen customer choice and attract diverse segments.

• Hyperlocal Offering Expansion: Deployment of a mobile app and website to extend the reach of stores within local catchments and provide enhanced convenience. Consumer data will be leveraged to strengthen the omnichannel shopping experience.

• Technology and Data Utilization: Use of consumer insights and loyalty program data to improve engagement, drive targeted promotions, and enable effective cross-selling and up-selling opportunities.

• In-Store Services Enhancement: Introduction of personal shopping assistants, live food sampling, product demonstrations, free samples, lucky draws, and special-day events, along with the development of a robust loyalty program offering exclusive rewards and discounts.

• Operational Efficiency Improvements: Continuous focus on cost reduction, process optimization, technology adoption, and customer service enhancements to maintain a competitive edge over peers.

BUSINESS RISK FACTORS & CONCERNS

1. Geographic Concentration of Revenue
All existing stores are presently located in Gujarat, and the entire revenue is derived from this single state. Revenue from operations stood at ₹4,735.28 lakhs in FY 2025, ₹3,338.68 lakhs in FY 2024, and ₹3,268.96 lakhs in FY 2023, constituting the whole of operational revenue during these periods. Expansion into new geographies may expose the company to significant liabilities and risks, and any failure to establish a strong presence outside Gujarat could adversely affect business, financial condition, and results of operations.

2. Inability to Sustain Historical Growth Rates
The company has reported strong growth in recent years, with net profit increasing at a CAGR of 179.30% between FY 2023 and FY 2025. However, such growth rates may not be sustainable in the future due to various internal and external factors, many of which may be beyond management’s control. Any inability to manage growth effectively or implement business strategies successfully could materially affect business performance and financial stability.

3. Dependence on Store Location for Customer Traffic
The success of operations is highly dependent on the location of stores, which are typically situated in densely populated residential areas with high accessibility. Customer footfall and sales volume are closely tied to the demographic and economic characteristics of these locations. Adverse developments such as shifts in primary occupancy (residential to commercial), rising competition from nearby retailers, changing customer demographics, evolving lifestyle patterns, or the popularity of competing businesses in proximity could reduce customer traffic and negatively impact revenue generation.

Summary:
Jay Ambe Supermarkets Limited is a growing retail chain with operations concentrated entirely in Gujarat. While the company has demonstrated significant growth in recent years, future expansion into new geographies, reliance on store locations, and the challenge of sustaining high growth rates present key risks. These factors could adversely impact business performance, financial condition, and operational results.