DHEERAJ GUPTA- THE VENDOR OF VADAS Presented By Chetan Pitambare(206) Raviraj Ghadi(176) Haresh Narkhede() Swapnil Bhangale(165)
Entrepreneur : Dheeraj Gupta
Company : Jumbo King Foods Pvt. Ltd.
Based In : Mumbai
Founded In : August, 2001
Industry : Hospitality/ Service
Dheeraj’s grandfather was the real pioneer.
Native Place In Haryana.
Worked at a tea stall at a station in Mumbai.
His father built the restaurant and hotel business.
Completed secondary education at Jamnabai Narsee School.
Graduate in Hotel Management and Catering Technology from IHM Mumbai,
Post graduate MBA from symbiosis Pune, in 1998.
In 1998, the McDonald's and Pizza Hut had not opened yet.
He started to set up his own business of selling packaged Indian sweets.
When he was tapping the export market, he had made a trip to London and stayed with a person who was a Burger King franchisee.
Read a book - Behind The Golden Arches - about the person who set up McDonald's.
Worked in a McDonald’s for ten days, which gave him a comprehensible idea about to start the largest fast food chain specially VADA PAV .
Vada pav was the obvious food choice because Mumbaikars love it.
Borrowed Rs 200,000 from his family & set up an outlet, which the family owned, near Malad station, a Mumbai suburb, and called it Chaat Factory.
One day when he was standing at the store, two ladies called the store a con, since he was only selling vada pav.
Thereafter the name JUMBO KING came into existence.
Borrowed Rs 500,000 from his brother to start a business
All the money from the business was ploughed back into buying the second store," so Dheeraj used to take back home a salary of only Rs. 5,000 a month.
He had priced the vada pav at Rs 5 whereas it sold for as little as Rs 2 in the market.
He took a bank loan to open the third store at Andheri (W)
Gupta has changed all the rules by introducing automation, packaging, a larger size, different cheese, round bread and flat patties instead of round.
He realized the power of hearing and sound. So he started a pseudo radio called Radio Today, which connects all our food joints.
He hired a hygiene consultant who advises McDonald’s and Pizza Hut to maintain hygiene and quality standards.
A young journalist who probably visited his store in Dadar and liked the product. After a good experience he wrote an article in their daily paper. Thus originally word of mouth definitely worked for Jumbo King greatly.
Typically in August their sales go up because people wish to come and experience the fun of celebrating a Vada pav day. He believe that at least one in every ten people knows about the Vada pav day 23 rd August.
He decided to use paper to wrap the product in.
In the last quarter of the year 2001, Jumbo King made a total of Rs 600,000 from just one outlet .
The other outlets opened from 2003
Today the company has 30 outlets in Mumbai, two in Surat, one in Ahmedabad, one in Baroda and one in Pune catering to about 40,000 people every day.
Jumbo King seems to have come up with a successful “ Secret Sauce ".
Jumbo King is looking at a turnover of Rs. 18 crores (almost $5 million) and with rapid growth to a projected turnover of Rs. 60 crores in 2008-09.
Dheeraj and his team feel they would like to bring in investors, but only after they reach the 100 store mark. "
Gupta is looking at franchises across the metropolis. In three to five years time, he wants Mumbai to have 75 Jumbo King outlets. By next year, he wants to double his current turnover of over Rs 1 crore (Rs 10 million).
More young people today have money to spend and at the same time, they are increasingly health, hygiene and quality conscious so Dheeraj like to ride on this generation.
They are planning to cover Gujarat and Maharashtra by 2009 completely.
“ If a Burger can get listed, why not a VADA PAV?”