jubilant food works capstone project

Jubilant Food works

Capstone Project

Group detail:-

SAMAR SAHA (37459)

NITIN KUMAR PODDAR (37450)

BHOJARAJ PATEL (37439)

ALOK SINGH (37436)

History of Jubilant Food Works Ltd.

Jubilant FoodWorks Limited (the Company) is a Jubilant Bhartia Group Company.

The Company was incorporated in 1995 and initiated operations in 1996.

The Company got listed on the Indian stock exchange in February 2010. Mr. Shyam S. Bhartia, Mr. Hari S. Bhartia and Jubilant Enpro Private Ltd. are the Promoters of the Company.

The Company & its subsidiary operates Domino’s Pizza brand with the exclusive rights for India, Nepal, Bangladesh and Sri Lanka.

IntroductionThe Company is India’s largest and fastest growing food service company, with a network of 844 Domino’s Pizza restaurants (as of February 05, 2015).

The Company launched Dunkin’ Donuts in India in April 2012 in Delhi. The Company has 50 Dunkin’ Donuts restaurants in India (as of February 05, 2015).

JUBILIANT BHARTIA GROUP

Pharmaceuticals and Life Sciences

Agri Products,

Performance Polymers &

Retail

Retail

Food

Oil and Gas Exploration

and Production

Services

Auto

Jubilant Bhartia Group

SWOT Analysis

STRENGTHS barriers of market entry domestic market monetary assistance provided

WEAKNESSES

competitive market

OPPORTUNITIES new products and services new markets growing demand

THREATS Global economy Government regulations Increase in labor costs Increasing costs Growing competition and lower

profitability tax changes Increasing rates of interest

Growth Drivers

Porter’s Five Competitive ForcesForce Intensity Comments

Degree of Rivalry High

Domino’s Pizza has high competition from other pizza brands like Pizza Hut, Smokin Joe, Gracia etc. However, it has

created a unique position of “guaranteed delivery in 30 minutes” which helps to wither the competition to some

extent. It commands a market share of 65% in the delivery market in which it was the first mover and enjoys sizable

brand recall. Also, it has positioned itself on the affordability platform which the lowest pizza priced at Rs 39. The

competitive intensity still stands high.

Threat of Entry High

There are not many barriers to entry apart from introducing products that suits the Indian palate. KFC was the first

MNC brand to enter India in 1995 which was followed by influx of other QSR brands such as Domino's and

McDonald's (which entered only after researching the market since 1990).

Threat of

SubstitutesHigh

Right from road size eateries to sophisticate dine ins and other national lower-priced fast-food chains such as

McDonalds, KFC all pose as strong substitutes for pizzas.

Buyer Power Medium Bargaining power of buyers is medium to low in case of pizzas.

Supplier Power LowJFL centrally sources all its raw material requirements, thus commanding significant bargaining power over its

suppliers. Economies of scale come into play as bulk orders are placed with various suppliers.

Strategic Group Map Analysis

Management TeamChairmen

Mr. Shyam S. Bhartia

Mr. Hari S. Bhartia

Board of Directors

Mr. Ajay Kaul Mrs. Rami Nirula Mr. Vijay Marwaha

Product Line Pizza

Pasta

Garlic Bread

ChocoLava

Donuts

Major Players in Fast Food

Domino’s Pizza

Pizza Hut

Smokin Joe’s

Garcias Pizza

KFC

Subway

Market Share in delivery system

DOMINOS

PIZZA HUT

SMOKIN JOES GARCIAS

65%

20%

7%2%

Top Line Analysis

FY 08-09 FY 09-10 FY 10-11 FY 11-12 FY 12-130

200

400

600

800

1000

1200

236.03313.91

475.52

765.24

1017.36

Net Sales

Amou

nt in

Rs

Cr.

Highlights of F.Y 2012-2013

Particulars 2012-2013(₹ in Cr)

2011-2012(₹ in Cr)

Total Income1018.52 767.05

Less :- Expenditure 826.29 644.95

Operating Profit 192.85 120.54

Less :- Depreciation 37.57 29.34

Less :- Interest 0 0.34

Profit Before Tax 154.66 92.42

Less :- Tax 49.79 20.43

Profit After Tax (Net Profit) 105.64 72

Operating Profit Margin

FY 08-09 FY 09-10 FY 10-11 FY 11-12 FY 12-130

20406080

100120140160180200

26.85 34.19

66.94

120.54

192.85

Profit Margin

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nt in

Rs

Cr.

Bottom Line Analysis

FY 08-09

FY 09-10

FY 10-11

FY 10-11

FY 11-12

0

20

40

60

80

100

120

7.76 7.332.97

72

105.64

Comparative Net Profit Analysis

Net Profit

Amou

nt in

Rs

Cr

Book Value Per Share

FY 08-09 FY 09-10 FY 10-11 FY 11-12 FY 12-1305

101520253035404550

Amou

nt in

₹/s

hare

.

Competitive AnalysisBrand No. of Stores Cities Format

Dominos 439 100 Own stores

Pizza Hut 180 56 Franchisee

Smokin’ Joe’s 42 23 Franchisee

Garcia’s Pizza 20 1 Own+Franchisee

Future Prospects

Plans to diversify into non food business

Aims to add 100 more stores and hike the price by 3 %

Plans to open 100 new stores of Dunkin donuts across the country this financial year

Things Jubilant must watch out for...

Till now no nation wide competitor, only city wise

Competition from New Entrants as market is untapped

Substitution effect (like restaurants, other food joints)

Suppliers growing bargaining power

Dominos on the Industry Life Cycle

Conclusion Business Model

◦ Relatively inelasticity of Demand Advantage.

Future growth depends on how well retailers are able to innovate, provide value for money, and keep up and surpass competitors.

The fast-food industry is becoming more global and it seems that will continue

The growth of the fast-food industry is expected to generally stay the same over the next few year.

THANKYOU !