How Jubilant Foodworks manages its customers

1. Jubilant Food works
Company Analysis

2. JUBILIANT
BHARTIA
GROUP
Pharmaceuticals
and Life
Sciences
Agri Products,
Performance
Polymers &
Retail
Retail
Food
Oil and Gas
Exploration and
Production
Services
Auto

5. 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

6. Growth Drivers

7. Age Composition in India
16%
36%27%
10%
11%
18-20
yrs
21-30
yrs
31-40yrs
Above
40
Below 18

8. Consumers Spending Capacity
14%
24%
4%
8%6%
26%
18%
Sales
housing
food
entertainment
education
healthcare
misc.
savings

9. 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.

10. 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.

11. Management Team
Chairmen
Mr. Shyam S. Bhartia
Mr. Hari S. Bhartia
Board of Directors
Mr. Ajay Kaul Mrs. Rami Nirula Mr. Vijay Marwaha

12. Product Line
 Pizza
 Pasta
 Garlic Bread
 ChocoLava
 Donuts

13. 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 31/03/2012
 54% market share in organised pizza market.
 1st Brand in Food Service to launch an Online
Ordering platform in India

14. Major Players in Fast Food
 Domino‟s Pizza
 Pizza Hut
 Smokin Joe‟s
 Garcias Pizza
 KFC
 Subway

15. Market Share in delivery system
DOMINOS
PIZZA HUT
SMOKIN JOES GARCIAS
65
%
20%
7%
2%

17. Top Line Analysis
0
200
400
600
800
1000
1200
FY 07-08 FY 08-09 FY 09-10 FY 10-11 FY 11-12
236.03
313.91
475.52
765.24
1017.36
Net Sales
AmountinRsCr.

18. Highlights of F.Y 2011-2012
Particulars 2011-2012
(₹ in Cr)
2011-2010
(₹ in Cr)
Total Income
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
Profit After Tax (Net
Profit)
105.64 72

19. How Every Rupee earned is spent ?
Raw Materials
35%
Power & Fuel
5%
Employee Cost
22%
Other
Manufacturing
Expenses
1%
Selling and
Admin
Expenses
20%
Miscellaneous
Expenses
8%
Depreciation
4%
Tax
5%
Sales

20. Operating Profit Margin
Profit Margin
0
50
100
150
200
FY 07-08 FY 08-09 FY 09-10 FY 10-11 FY 11-12
26.85 34.19
66.94
120.54
192.85
Profit Margin
AmountinRsCr.

21. Bottom Line Analysis
0
20
40
60
80
100
120
FY 07-
08
FY 08-
09
FY 09-
10
FY 10-
11
FY 11-
12
7.76 7.3
32.97
72
105.64
Comparative Net Profit Analysis
Series 1
AmountinRsCr

22. Earnings Per Share
&
Dividend Per Share
1.33
1.26
5.18
11.16
16.23
0
0
0
0
0
FY 07-08
FY 08-09
FY 09-10
FY 10-11
FY 11-12
Chart Title
DPS EPS
Amountin₹/share

23. Book Value Per Share
0
5
10
15
20
25
30
35
40
45
50
FY 07-08 FY 08-09 FY 09-10 FY 10-11 FY 11-12
Amountin₹/share.

24. Financial Leverage
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
FY 07-
08
FY 08-
09
FY 09-
10
FY 10-
11
FY 11-
12
4.21
4.44
1.07 1 1
Financial Leverage

25. Liquidity Analysis
Current Ratio Quick Ratio
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
0.720.780.88
0.59
Current Ratio
Current
Ratio
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.66 0.68 0.72
0.45
Quick Ratio
Quick
Ratio

26. Debtors Turnover Ratio
FY 08-09
FY 09-10
FY 10-11
FY 11-12
259.17
230.93
206.59
187.15
Debtors Turnover Ratio

27. Asset Turnover Ratio
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
FY 08-09 FY 09-10 FY 10-11 FY 11-12
Asset Turnover
Ratio, 4.14
Asset Turnover Ratio

28. Return Analysis
Return on Capital
Employed Return on Networth
0
10
20
30
40
50
16.44
33.91
48.67
ROE %
ROE %
0
5
10
15
20
25
30
35
40
Return on Networth %
Return on
Networth %

29. Jubilant Performance in Secondary
Capital Market
Co-relation with Sensex
Returns on Benchmark
Index
Company Equity Share price
comparison with Sensex

30. Market Price as on 1st Oct 2012

31. Price to Earning Comparison
as on 31/03/2012
Industry P/E
Jubilant P/E
0
20
40
60
80
Category 1
Industry
P/E, 34.9
Jubilant
P/E, 76.56
AxisTitle
Chart Title

32. Shareholders Holding Pattern
57%,
38% 2%
2%
1%
Promoters
FII
Corporate Bodies
Indian Public
Others

33. 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

34. Differentiation Strategies adopted by
Dominos and Pizza Hut.
Dominos Pizza Hut
Differentiation Strategy Delivery Innovation
Competitive advantage Favourable Pricing-
value 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

35. 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

36. 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

38. Dominos on the Industry
Life Cycle

39. 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.

40. Bibliography
 www.moneycontrol.com
 www.jubilantfoodworks.comrk
 http://en.wikipedia.org/wiki/Jubilant_FoodWorks
 http://articles.economictimes.indiatimes.com/2012-
09-19/news/33952579_1_jubilant-foodworks-jubilant-
foodworks-jubilant-plans
 http://marketentryindia.com
 http://economictimes.indiatimes.com
 Annual report of Jubilant FoodWorks Limited 2011-
2012

41. THANK
YOU !