ADB approves $10 million to support DALI expansion

MANILA, Philippines — The Asian Development Bank (ADB) is infusing $10 million worth of investments to support DALI Everyday Grocery chain’s expansion plans.

A document from the ADB showed the multilateral lender approved an equity investment of $10 million for DALI’s expansion in the Philippines.

“The project will finance the expansion of Dali network of hard discount retail stores and distribution centers and procurement from local private label suppliers,” the ADB said.

In addition, the investment will be used to fund off-grid rooftop solar panels and green building certifications for some stores and distribution centers to achieve energy cost savings and reduce the carbon footprint of DALI’s operations.

This is the second project being undertaken by ADB with DALI.

“This project, together with the earlier transaction, will generate employment for 6,000 workers, including 45 percent women, by 2027,” the ADB said.

Last year, ADB approved an equity investment worth $15 million to expand DALI’s network of retail stores and distribution centers and cold chain infrastructure in the country.

DALI is the first company in the country to focus on hard discount retailing, with its stores located mostly in rural and peri-urban communities instead of premium commercial centers in the cities.

As a hard discount retailer, it keeps product prices low through high sales volume of a limited product range and lean operations.

The ADB said the new project with DALI is aligned with the aim of the Philippine Development Plan to improve access to value chains for rural suppliers and promote competition in the retail sector.

It is also in line with ADB’s $14 billion food security response, as well as its goal to deliver $100 billion in climate financing to support its developing member countries from 2019 to 2030.

Anja Grote Westrick, director of Strategic Supply Chain and ESG officer of Hard Discount Philippines Inc., which owns and operates DALI Everyday Grocery in the country, earlier said the aim is to open at least 300 new branches in Luzon to expand its total stores to as much as 950 in the country by the end of the year.

DALI has around 630 stores in Luzon.