In the dynamic world of Indian retail, where most organized players vie for dominance in metro and Tier I cities, Star Localmart—the rural-first supermarket chain by Ghodawat Retail Pvt. Ltd.—is charting a disruptive, inclusive path. Its bold focus on India’s underserved Tier II to Tier VI towns is not just a business strategy, but a blueprint for equitable retail expansion.
“We built Star Localmart with Bharat at the center of our ambition. While nearly 80% of India’s consumption still flows through the General Trade channel, no organized retail brand was addressing this segment with scale and seriousness. Our model changes that,” says Srinivas Kolluru, Business Head, Ghodawat Retail.
The Star Localmart Model: Rural-First
Launched in FY20, Star Localmart is India’s first large-scale, organized supermarket chain designed explicitly for rural markets. In contrast to urban-focused expansion, its vision is rooted in the belief that smaller towns and villages are not only viable retail markets but also full of potential for scalable and sustainable growth.
What makes the model unique is its low-cost, high-efficiency format. It is designed to deliver quick store-level profitability, while consumers gain access to modern retail standards. The average store operationalizes within 15 days of signing, a remarkable feat in the retail sector.
The chain follows a revenue-sharing model, aligning incentives between the brand and its partners. This enables mutual growth, enhances accountability, and builds local ownership of the retail experience.
Strategic Growth and Key Metrics: FY24-25 Highlights
| Metric | FY24-25 Achievement |
|---|---|
| Stores Opened | 110+ stores across Maharashtra & Karnataka |
| Revenue | Rs. 53 crores |
| Target Revenue (FY25-26) | Rs. 175 crores |
| Product Assortment | 3,000–3,500 SKUs per store |
| Footfall | 5 lakh+ unique customers |
| Repeat Footfall | 60%+ |
| Market Share in Select Localities | Up to 5% within months |
| Store Opening Timeline | 15 days from agreement |
| Employment Goal | 25,000 jobs via 3,000 stores (next 5 years) |
The FY24-25 performance clearly shows momentum across metrics: footprint, revenue, customer engagement, and operational efficiency. From a revenue base of Rs. 53 crores, the business is targeting more than 3x growth in FY25-26, driven by deeper rural penetration.
Supply Chain Backbone: Hub-and-Spoke at Scale
The Star Localmart network runs on a hub-and-spoke supply chain, ensuring timely replenishment and price consistency across locations. With a 92% fill rate, the system maintains stock levels and service quality even in remote towns. Ghodawat Retail’s backend infrastructure includes integrated inventory systems, tie-ups with major FMCG brands, and an expanding base of private label products, allowing better margins and consumer value.
This back-end strength complements the front-end simplicity—stores that are easy to set up, easy to run, and tailored to local consumption habits and seasons.
Customer Connect: Earning Trust, Building Loyalty
Star Localmart’s stores aren’t just retail outlets—they are community hubs. With clean layouts, local language signage, essential assortments, and competitive pricing, these stores are bringing the organized retail experience to first-time modern trade consumers.
With the motto “Paas bhi, Khaas bhi”, Star Localmart is redefining convenience for markets traditionally untouched by modern retail. By bridging accessibility and quality, the brand is not only bringing everyday essentials closer to rural consumers but is also actively introducing national brands, making brand discovery a part of everyday life. Star Localmart is playing a vital role in transforming rural shopping behavior through trust, reach, and relevance.From homemakers to small traders and daily wage earners, the customer base is broad and loyal. The 60% repeat footfall indicates that once customers walk in, they come back. The chain’s ability to build trust through proximity and affordability is helping shift rural consumption from kirana stores to supermarkets—without losing the personalized touch.
Scaling With Purpose: Social and Economic Impact
What makes Star Localmart stand apart is its dual bottom line. Every new store is a step towards inclusive economic development. The chain’s plan to open 3,000 stores over five years is expected to generate 25,000 direct and indirect employment opportunities, especially in areas where livelihoods are limited.By empowering local entrepreneurs, bringing modern retail to ignored markets, and ensuring unit-level profitability, the model is both scalable and socially meaningful.
The Road Ahead: From 100 to 3,000 Stores
With a goal to reach 250 stores by March 2026, Ghodawat Retail is doubling down on its rural mission. Expansion will continue across Maharashtra and Karnataka, with plans to enter additional states where organized rural retail remains untapped.
“We are scaling not just stores, but a movement. Our approach ensures rural consumers don’t have to compromise on choice, price, or experience. We are proud to be building a retail model for Bharat, from Bharat,” adds Srinivas Kolluru.
Bharat’s Moment in Retail
Star Localmart’s recognition as the IMAGES Most Admired Retailer of the Year: 360° Market Expansion is well-earned. It is not just growing in numbers, but redefining rural retail’s possibilities. While many players still view India’s heartland as a challenge, Star Localmart sees it as the core of retail’s future.
In the coming years, as consumption deepens and aspirations rise in smaller towns, it is models like Star Localmart that will shape the next chapter of India’s retail story—one rural neighborhood at a time.
