jubilant food works capstone project
TRANSCRIPT
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
Amou
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.
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