Industry profile: While India has always been a food-loving country, with each region having its unique cuisine, Indians have never been giant on eating out. But all that is changing now. India’s restaurant industry has been multiplying over the last decade, and the growth story is set to continue for the foreseeable future. There were nearly 22 lakh hotel and restaurant establishments in India in 2002. The food service or restaurant industry was worth a whopping Rs. 43,000 crores in 2010 and growing at a healthy rate of 15-20 percent annually. The restaurant industry’s growth coincided with the development of the great Indian middle class, which was the byproduct of liberalization. Rapid urbanization, growing awareness of Western lifestyles, more women joining the workforce, and higher disposable income were some of the factors that contributed to the growth of the restaurant industry.
The Indian food industry is poised for massive growth, increasing its contribution to the world food trade every year due to its immense potential for value addition, particularly within the food processing industry. The Indian food and grocery market is the world’s sixth-largest, with retail contributing 70 percent of the sales. The Indian food processing industry accounts for 32 percent of the country’s total food market, one of the largest industries in India and is ranked fifth in terms of production, consumption, export, and expected growth. It contributes around 8.80 and 8.39 percent of Gross Value Added (GVA) in Manufacturing and Agriculture, respectively, 13 percent of India’s exports and six percent of the total industrial investment. As of November 2016, the Food Safety and Standards Authority of India (FSSAI) has launched a significant scheme worth US$ 72 million to address the urgent need to upgrade Food Testing Laboratories in India.
Company Profile: The Company is the flagship company of Jubilant Bhartia Group. The Company operates in the quick-service restaurant segment. The Company and its subsidiary have the right to develop and manage Domino’s Pizza brand in India, Sri Lanka, Bangladesh, and Nepal. As of 30 June 2018, The Company is the market leader in the pizza segment with a network of 1,144 Domino’s Pizza restaurants and 37 Dunkin’ donuts Restaurants across 268 cities in India. Dunkin’ Donuts in India is segmented as a Food cafe and sells a wide range of Donuts, Dunkin’ Donuts Original Blend Drip Coffee, Espresso coffee-based beverages such as Cappuccino and Latte, Milkshakes, Smoothies, Iced Teas, Coolattas, as well as a delectable range of Burgers, Wraps, Sandwiches, and side-bites.
Shareholding Pattern: BSE Data
Financials and ratios : [table id=165 /]
Future prospectus: Jubilant Food is the best example of a Growth company. The growth taking place here is all about. First increase in purchasing power of Indian consumers. Overall there is consumption growth and so do the expenses on food in India, which will help the Company grow.
