The company is bullish on its India growth prospects, backed by an ambitious expansion roadmap

Value retail is no longer just about low prices. Increasingly, it is about offering enough variety to keep shoppers browsing long after they have found what they came for. That is precisely the space MR.D.I.Y. has carved out for itself.

Established in Kuala Lumpur, Malaysia, in July 2005, the retailer opened its first store with the ambition of making quality home improvement and everyday products accessible to everyone at affordable prices.

Over the past two decades, that idea has evolved into one of the world's largest value retail chains, operating more than 5,000 stores across 15 countries. Today, each outlet typically stocks up to 18,000 products across ten categories, making assortment and accessibility the cornerstones of its business.

India became part of this global journey in 2019. Rather than competing solely on low prices, MR.D.I.Y. set out to build a retail proposition centred on variety, quality and a seamless shopping experience.

"Bringing MR.D.I.Y. to India has been an incredibly enriching journey. I was involved from the very first store in 2019 and have seen the organisation grow from its first employee in India to nearly 5,000 people today," said Vikas Gupta, Group CEO, MR.D.I.Y. India, in an exclusive interview with IndiaRetailing.

India Business Model

Key pillars include:

• 100% offline retail model
• Single-brand retail format
• Large-format stores averaging around 6,000 sq. ft.
• 12,000 to 15,000 SKUs per outlet
• Focus on value through quality, assortment and pricing
• Directly operated stores

Expanding Through Physical Retail

While many retailers have embraced omnichannel commerce, the company has deliberately chosen to operate entirely through offline retail, believing that the in-store experience is central to its value proposition.

"Our focus today is entirely on brick-and-mortar stores because that is our bread-and-butter business. Before exploring newer channels, we want to ensure that our expansion is smooth and that we continue refining our product and pricing proposition," said Gupta.

Today, the retailer operates nearly 440 stores across more than 120 cities, having opened almost 400 stores in the last four years.

While MR.D.I.Y. initially expanded through shopping malls, the retailer has gradually shifted towards standalone stores to sustain its aggressive expansion plans.

Of its existing network, around 150 to 160 outlets are located in malls, with the remaining stores operating as standalone destinations.

"Malls were the natural starting point when we entered India, but the limited availability of quality mall space makes it difficult to rely on them for large-scale expansion," said Gupta.

"Standalone stores have received tremendous acceptance from consumers. Over the next three to four years, nearly 80% of our new stores are expected to come up in standalone locations, simply because they offer a much larger opportunity for expansion," he added.

The company has also refined its preferred store format over time. While some of its earliest stores measured around 2,500 sq. ft., newer outlets typically range between 5,000 sq. ft. and 12,000 sq. ft., allowing for a wider assortment and a better shopping experience. The average store size currently stands at 6,000 sq. ft.

Building a Value Retail Model for India

Unlike many retailers that rely on discount-led merchandising, MR.D.I.Y.'s proposition in India revolves around offering greater depth across categories, giving it a distinct competitive advantage.

Its Indian stores currently carry 12,000 to 15,000 SKUs, with the assortment continuing to expand as consumer preferences evolve.

Its portfolio spans everything from hardware, household and electrical essentials to furnishings, car accessories, stationery, sports, toys, gifts, tech accessories, jewellery and cosmetics.

“Nearly 80% of customers who walk into MR.D.I.Y. stores make a purchase, resulting in a conversion rate that significantly exceeds the industry average for non-grocery retail,” said Gupta.

While women account for nearly 60% to 70% of its customer base, younger shoppers are increasingly driving demand across toys, stationery, jewellery and cosmetics. Together, these categories contribute around 30% to 35% of sales.

Local Sourcing Emerges as the Next Growth Lever

Following the pandemic, the company has steadily increased procurement from Indian manufacturers to build a product portfolio that better reflects local preferences while supporting the government's manufacturing push. 

"Going forward, increasing local sourcing will be one of our biggest priorities. Indian consumers have unique preferences, and developing products locally will allow us to offer a wider, more relevant assortment while strengthening our supplier ecosystem," said Gupta.

The company is working closely with domestic suppliers to expand manufacturing capabilities and increase the number of locally developed SKUs, allowing it to customise assortments for the Indian market more effectively.

Financial Momentum

The retailer has recorded around 60% year-on-year growth, while its CAGR has been more than 50% over the past two to three years. It has already achieved profitability at the entity level, a significant milestone for a retailer still in the early stages of its expansion in India.

According to Gupta, strong same-store sales growth, rising customer footfall and increasing repeat purchases have all contributed to the company's healthy performance.

"The business has performed significantly better than what we had anticipated when we entered India. The level of consumer acceptance, footfall and conversion has been extremely encouraging.

"We have grown by around 60% over the last year, and we expect to continue growing by at least 50% over the next three to four years, while maintaining a strong focus on costs and profitability," Gupta said.

The Road Ahead

As MR.D.I.Y. looks towards its next phase of growth, its immediate goal is to expand from around 440 stores today to 500 by the end of 2026. In the long term, the company is targeting 1,000 stores by 2029.

Much of this expansion will be driven by Tier II and Tier III cities, where organised value retail remains relatively underpenetrated. At the same time, the company will continue investing in product innovation, local sourcing and operational excellence.

Gupta identified three strategic priorities that will define MR.D.I.Y.'s next chapter:

• Strengthening product assortment and pricing through local sourcing
• Driving operational excellence across the organisation
• Building MR.D.I.Y. into one of India's most recognised value retail brands

“Compared with many of our other international markets, the headroom for growth in India is enormous, and we believe India can become one of the largest geographies for the group over the next five to ten years,” said Gupta.

"Over the next few years, our focus is to become a household name, strengthen our product proposition and continue delivering better value and better shopping experiences to consumers," he added.