Jubilant Foodworks is an Indian multinational fast food company and the largest pizza chain in India. It operates Domino's Pizza stores across India. The company has experienced strong growth over the past decade, with net sales increasing from Rs. 236 crore in FY 2008-09 to over Rs. 1017 crore in FY 2012-13. Jubilant Foodworks has a majority share of the organized pizza delivery market in India. While it faces competition from other players like Pizza Hut, the company is well positioned for further growth due to favorable demographic and economic trends in India as well as expansion plans into new product categories.
3. Pharmaceuticals
and Life Sciences
Agri Products,
Performance
Polymers &
Retail
Auto
JUBILIANT
BHARTIA
GROUP
Services
Retail
Oil and Gas
Exploration and
Production
Food
4.
5.
6. Problems
Environmental friendly products cost high
Balance between societal expectation and companies economic objectives
Trends
Health related issues
Marketing to Children
Low level customer commitment
Value added technology services
Attracting different segments of market
10. History of Jubilant Food Works Ltd.
Founded in 1995
First Domino’s pizza store - January 1996.
1996- company was converted into a public limited company
and the name was changed to Domino's Pizza India Ltd.
September 24, 2009- the company changed their name from
Domino's Pizza India Ltd to Jubilant Foodworks Ltd.
11. Company Profile
Largest pizza chain
Offers a menu of quality pizza and side dishes to their
customers.
Operate their stores pursuant to a Master Franchise
Agreement with Domino's International.
Operational excellence.
14. Extra Cheeze on the Pizza...
Amongst Top
5 in Global Dominos Pizzas.
70% Market Share in Pizza Home Delivery Segment.
4 out of the 5 busiest stores in Domino‟s Pizza world are
from India.
Average 1.39 Lakh Pizzas is sold by per Domino‟s Store.
Robust Supply Chain Management
Approx 15000 employees as on 31/03/2013
54% market share in organised pizza market.
1st Brand in Food Service to launch an Online Ordering
platform in India
15. Major Players in Fast Food
Domino’s Pizza
Pizza Hut
Smokin Joe’s
Garcias Pizza
KFC
Subway
16. Market Share in delivery system
SMOKIN JOES GARCIAS
7%
2%
PIZZA HUT
20%
DOMINOS
65%
17.
18. Top Line Analysis
1200
1017.36
Amount in Rs Cr.
1000
765.24
800
600
400
475.52
236.03
313.91
200
0
FY 08-09 FY 09-10 FY 10-11 FY 11-12 FY 12-13
Net Sales
19. Highlights of F.Y 2012-2013
Particulars
2012-2013
(₹ in Cr)
2011-2012
(₹ in Cr)
1018.52
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
Total Income
Profit After Tax (Net 105.64
Profit)
72
20. How Every Rupee earned is spent ?
Sales
Depreciation
4%
Miscellaneous
Tax
Expenses
5%
8%
Selling and
Admin
Expenses
20%
Other
Manufacturing
Expenses
1%
Raw Materials
35%
Employee Cost
22%
Power & Fuel
5%
26. Liquidity Analysis
Quick Ratio
Current Ratio
Current Ratio
Quick Ratio
1
0.8
0.6
0.4
0.2
0
0.88
0.72 0.78
0.59
Current
Ratio
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
0.66 0.68 0.72
0.45
Quick
Ratio
29. Return Analysis
Return on Capital
Employed
ROE %
Return on Networth %
48.67
50
40
33.91
30
20
Return on Networth
16.44
10
0
FY FY FY
10-11 11-12 12-13
40
35
30
25
20
ROE % 15
10
5
0
Return on
Networth %
30. Jubilant Performance in Secondary
Capital Market
Co-relation with Sensex
Company Equity Share price
comparison with Sensex
Returns on Benchmark
Index
32. Price to Earning Comparison
as on 31/03/2013
Chart Title
Jubilant
P/E, 76.56
Axis Title
80
60
40
Industry
P/E, 34.9
Jubilant P/E
20
Industry P/E
0
Category 1
34. Competitive Analysis
Brand
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
35. Differentiation Strategies adopted by
Dominos and Pizza Hut.
Dominos
Pizza Hut
Differentiation Strategy
Delivery
Innovation
Competitive advantage
Favourable Pricingvalue for money
Focused on Quality
Store Location
Located near Target
Market
Located at up Markets
Format
Delivery and take-away
„Sit & Dine‟
Tag line
“Hungry Kya?”, “30
minutes or free” and
“Khushiyon ki Home
Delivery”
“good times starts with
great pizzas”
Price Range
Rs. 39-260
Rs.75--380
36. 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
At present it runs 3 store
37. 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
40. 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.