PITCHBOOK

on

Presented by : Harshal Jaiswal | Keshav Kumar Mishra | Rushabh Morabia | Sudhanshu Singh

Industry Overview
$ 94
billion

CAGR 10%
Independent Food
Services

$ 151
billion

2019

2014

Pro-Growth
Demographics

Higher disposable
income

Growing
Urbanization

$2
billion

Market Size

4000

CAGR 13%
Chained Food
Services

Transit locations
opportunity

25.00%
20.00%

Exp. Growth Rate

3000

15.00%

2000

10.00%

1000

5.00%

0.00%

$4
billion
2019

2014

Growth in
organized retail

Consumer
Preferences

5000
Per Capita
Disposable Income
Growth

Organized FSI to grow faster

Higher disposable income
Increasing awareness for
hygiene and sanitation
Higher inclination towards
branded products

Increasing
digitization

Industry Overview

Almost 80% middle class people go

out to eat on a monthly basis

Competitor Analysis
Revenues of various Brands

Figures are in Billion Rs.

Domino's Pizza
4.8

13.8

Foreign Brands

2.4

Indian Brands
Competitive Rivalry - High

Pizza Hut

2.45

Competitive Rivalry is high being a growth sector

Increasing demand in for food in branded retail chains
Presence of foreign brands makes it tough to gain new market

Threat of new Entrants - High

No. of Stores

Cities

Format

Do i os

306

69

Own Stores

Pizza Hut

140

34

Franchisee

oki Joes

42

23

Franchisee

Garcias Pizza

20

Own + Franchisee

KFC

9.6
23.4

Brand

McDonald's

1.8

Subway
Others

Ju ila t Food orks Beliefs

Capitalizing the brand name
Customizing the palette

Threat of Substitutes - High

Introduce new products

Low barriers to entry

Need of introducing
product that suits Indian
palate

Road side eateries, dine

ins, other chains
New options available
due to foreign chains

Bargaining power of buyers Medium

Bargaining power of suppliers

- High

Not many brands

available for pizza &
donuts
Low cost products

Importance of material,
delivery of raw material
Variety of ingredients in
small quantity needed

Developing unique business

model
Delivering Operational excellence

Focusing on enticing customers

To create sustainable value in the social and environmental spheres and enhance
relationships with the community, customers, employees and all other stakeholders.

Company Overview
Summary
Headquarters : Noida, Uttar Pradesh, India
Founding : Founded on 16 March,1995 as a part of
Jubilant Bhartia group
IPO : January, 2010 at a split adjusted price of Rs. 135 /Share
Employees : 15,000
Geographic Mix : 90% India, 10% Nepal, Sri Lanka and
Bangladesh

Company Overview
Do i os Pizza Fou ded i

More than 11,900 franchised and Company-owned

Restaurants in more than 80 0international
markets

1st Restaura t operated i I dia i Mar9

921 Restaurants across 209 Indian cities* with
India currently being the biggest market for
Do i os Pizza outside the U ited tates
E lusi e right to ope Do i os Pizza restaura ts
in India, Sri Lanka, Bangladesh and Nepal

Du ki Do uts Fou ded i

More than 11,400 Restaurants in more than 36

countries
st Restaura t operated i I dia i Apr
61 Restaurants across 21 Indian cities* with
Presence in Delhi, NCR, Chandigarh, Punjab,
Uttarakhand, Haryana, Maharashtra, Karnataka ,
Gujarat and Goa, Telangana and Tamil Nadu

Alliance provides exclusivity to operate and

de elop Du ki Do uts restaura ts i I dia. The
Current franchising agreement till December 2024
agreement is for a period of 15 years (ending
with right of renewal for another 10 years
December 2026) with the option of renewal for 10
years
Accumulated learning's to drive ramp-up i Do i os Pizza & Du ki Do uts

The Ascent of Dominos in India

Operational Excellence

Robust
Infrastructure

Training
Support

Best Practices
Operational
Excellence

Employee
Rewards

Review
Mechanism

At, Do i os Pizza a d
Du ki Do uts, the elief
is to deliver consistency in
product and services to
delight the customers
An i teg ated suppl

hai fo Do i os Pizza a d Du ki Do uts adapted to I dia

to deal with geographic and demand expansion

o ditio s; ell-equipped

Company Overview
Site selection &
Restaurant construction
process

Identify new
restaurant
location
Restaurant
opening
function

Local
advertisement
(distribution
of flyers,
regional
media
coverage)

Construction/
Purchase and
installation of
machinery

National Marketing

Operational
and Financial
diligence

Average restaurant
opening time of between
35-45 days from the date of
possession of premises for
a new restaurant location
ROI/Payback period
analysis undertaken prior
to opening a restaurant
location
ROI/Payback period
analysis undertaken prior
to opening a restaurant

Handover of
restaurant to
contractor for
interiors

Legal due
diligence and
agreement
sign off with
landlords

Negotiate
with landlords

Television, Print
media, radio
Innovative food
product launches
Emotional brand
positio i g
Yeh
hai Rishton ka
ti e

Local Store Marketing

Site approval
of Reg.
Manager,
Head of
Operations

Consumer-Focused and
Innovative Marketing

Door Hangers
Flyers
Customer lifecycle
management
program
Restaurant wise
innovative BTL
activation

Digital Marketing

6.6 million
Facebook likes
84,200+ twitter
followers
11.5 million views
for videos of
Do i os pizza
India on Youtube

CRM
O e to o e
marketing utilizes
information from pointof-sales software system
to provide relevant
customized
communication/ offers
to consumers

Innovations

Subwich - A delicious chili jalapeno, three bean Veg Patty or juicy American style
herbed Chicken Patty smeared on both sides with the creamy & spicy smoked pepper
relish and a layer of exotic bell peppers packed between two freshly baked buttery
crusts

Taco Mexicana - A crispy flaky wrap filled with Mexican Arancini Bean Patty/ Hot &
Smoky Chicken Patty rolled over exotic creamy Harissa sauce

Cheesy Wonder Pizza - Cheesy combination of creamy chilli cheese spread and liquid
cheese filled inside a buttery crust

Junior JoyBox is a co plete kids eal, co sisti g a cheesy pizza slice, two yu
y
breadsticks with oregano seasoning, a delicious rainbow sprinkled custard dessert, a
fruit based beverage and a toy

Key Financial Metrics

Historical Revenues
2500

Basic Earnings Per Share

2100.29

2000

20.12

20

1745.7
1422.18

1500

25
15.94

15

16.96

2014

2015

11.16

1024.87
10

1000 680.28
500

0
2011

2012

2013

2014

2011

2015

2012

Historical Margins
20.00%

18.09

17.96%

19.03%

2013

Product Sales Mix

17.64%

0.01%

0.36%
14.91%

15.00%

12.54%
10.57%

10.13%

10.00%

9.26%
6.80%

Pizza
1.20%

Beverages

16.45%

3.21%
5.30%

Desserts

4.37%

Dips

5.00%
74.36%

0.00%

Others
Others (Traded)

2011

2012

Net Profit Margin

2013

2014
EBITDA Margin

2015

Other Op. Revenue

Growth Trends- Revenue & Income

Total I co e i mn)

EBITDA

25000

3000

CAGR 37%

CAGR 32%

20745
2500

20000

2551

2628

2444

17235
1906

2000
15000

14073
1500
10171

1202

10000
1000

6781

705

664
5000

4239
500

0
FY10

FY11

FY12

FY13

FY14

FY15

FY10

FY11

FY12

FY13

FY14

FY15

FY16
(Q1)

Growth Trends- Profitability

PAT

Net Worth

1600

8000
1351

1400

1258

7000
1233

1200

CAGR 30%

1056
1000

5000

800

720

4000

600
400

CAGR 42%

6000

3000
330

295

200

2000
1000

0
FY10

FY11

FY12

FY13

FY14

FY15

FY16
(Q1)

FY10

FY11

FY12

FY13

FY14

FY15

Company Overview

In past 6 years, Jubilant food works have shown impressive growth in

number of stores across the country but the decline in same store sales
growth pose serious concerns because what this implies is that they have
not been effectively able to extract more revenues per store and there
might be some chance of cannibalization as well.

The company has effectively eliminated all debts from their books.

Board of Directors at Jubilant Foodworks

Mr. Shyam S. Bhartia (Chairman & Director)
Has experience in the pharmaceuticals and specialty chemicals, food, oil and gas, aerospace and IT
sectors
Ba helo s deg ee i o
e e St. Xaviers College, Calcutta University; Fellow member of the ICWAI

Mr. Hari S. Bhartia (Co-Chairman & Director)

Has experience in pharma, life sciences & healthcare, oil & gas (exploration & production), agri &
performance polymers, food & retail and consulting services in aerospace and oilfield services
Ba helo s degree in chemical engineering from IIT, Delhi

Mr. Ajay Kaul (CEO and Wholetime Director)

Has experience in India and abroad in industries such as financial services, airlines, express distribution
and logistics and food retail
Holds a a helo s Deg ee i Te h olog f o IIT Delhi a d MBA f o XLRI, Ja shedpu

Mr. Vishal Marwaha (Independent Director)

He has expertise in private equity and investment banking.
Holds a a helo s deg ee i o
e e f o the U i e sit of Delhi a d is a ualified ha te ed
accountant

Board of Directors at Jubilant Foodworks

Ms. Ramni Nirula (Independent Director)

Has experience in the banking and finance industry including Project Financing, Strategy, Planning &
Resources and Corporate Banking
Holds a a helo s deg ee i e o o i s a d a aste s deg ee i usi ess ad i ist atio f o
University of Delhi

Mr. Phiroz Vandrevala (Independent Director)

He has been part of numerous expert committees constituted by the Reserve Bank of India to guide the
Central Bank in its policy-making efforts, as well as IT advisory bodies in India and on the Board of
several prominent educational institutions
He is a graduate from Kolkata and a qualified Chartered Accountant

Mr. Arun Seth (Independent Director)

He has commercial and technical expertise in the IT and telecommunications industry in India.
Holds a a helo s deg ee i e gi ee i g f o IIT, Ka pu a d MBA f o IIM, Cal utta

Head of Departments of Jubilant Foodworks

Ravi S. Gupta (President & CFO)
Spearheading finance & accounts, legal, secretarial, strategy and M&A, IT, and investor relations
Ravi Gupta has over 24 years of experience in Corporate Finance, strategy and accounting and Information Technology.
He holds a helo s degree in commerce from Shri Ram College of Commerce, Delhi University, Diploma in Business (Finance) and is also a
fellow member of ICAI and Associate member of ICMA and ICSI.

Mr. Tarun Bhasin (President & COO -Dominos Operations)

Responsible for operations and business development, project and maintenance, training and customer service, quality & Six Sigma for
India
Has over 22 years overall experience out of which 19 years have been with the Company
He holds a a helo s deg ee i A ts f o U i e sit of Delhi a d diplo as i pu li elatio s a d hotel a age e t f o Bhartiya Vidya
Bhavan, New Delhi and National Council for Hotel Management and Catering Technology, New Delhi, respectively

Dev Amritesh (President & COO -Du ki Do uts)

Responsible for Operations & business development, training & customer service, quality and Six Sigma, marketing, new product
development and HR
Has over 16 years overall experience out of which over 9 years have been with the Company
He holds a BE degree from Bangalore University and also holds a PGDBM (Marketing and Operations) diploma from IMT, Ghaziabad.

Mr. Avinash Kant Kumar (Executive Vice President, Supply Chain)

Responsible for supply chain, commissary management and procurement
Has over 21 years overall experience in Supply Chain, Logistics, Procurement & Sales. He has experience in setting up two start-up
companies. He has recently joined JFL.

He has done B.Tech. (Hons.) from IIT Kharagpur & PGDIE from NITIE,Mumbai.

Head of Departments of jubilant Foodworks

Biplob Banerjee (Executive Vice President, HR & CSR)

Currently responsible for HR & CSR
Has o e
ea s of o e all e pe ie e a d ha e e e tl joi ed JFL i Ma 5
He holds a Masters in Business Administration degree from XLRI, Jamshedpur and is a graduate (Mechanical
Engineering)

Harneet Singh (Senior Vice President, Marketing)

Currently responsible for brand management, new product development and national marketing
Has over 18 years overall experience out of which 17 years have been with the Company
Master in Management Studies along with a BE (Mechanical) degree from Bhopal University

Arvind Vats (Senior Vice President, Mgt. Assurance and Investor Relations)
Responsible for management assurance, corporate governance, FP&A, Investor relations, administration and corporate
affairs
Has over 21 years overall experience out of which 10 years have been with the Company
He is a CA & a fellow member of ICWA and also holds MBA (Finance) degree from IGNOU and PGDBM from IMT

Jubilant Foodworks Historical Trading Performance

Jubilant Foodworks Recent Trading Performance

11th Aug,2015
Jubilant Food
Q1 net seen up
26%, SSSG likely
at 6-8%

13th Aug,2015
Jubliant
Foodworks Q et
profit rises 6% to
Rs. 31.53 crore

14th Aug,2015
Double digit same
store growth
unlikely in FY16:
Jubliant Food

Jubilant Foodworks P/E Multiples Over Time

From September12 to
May14 the stock prices and
P/E ratio of the company
followed a similar trend with
very minor gaps in the trend
lines with few exceptions

Post May14, as the government changed and economic prospects seemed to have a major boost with expected increase in
disposable income, investments etc. the stock process soared and had unprecedented growth. The increased gap in the trend
lines between P/E ratios and actual stock prices explains increase in attractiveness of the stock as investors are ready to pay
more price for the stock.

Jubilant Foodworks P/BV Multiples Over Time

Technical Analysis Bollinger Bands of Jubilant Foodworks

The Bollinger bands in the graph shows the support and resistance level of the Jubilant Foodworks stock. The stock has
crossed the support and resistance level for few times during which the volume is high too. The stock prices in general shows
the stability and very few times it crosses the levels, so the stock is stable in terms of volatility with high growth prospects.

Shareholding Pattern of Jubilant Foodworks

Shareholding Pattern of Jubilant Foodworks

Top Public Shareholders of Jubilant Foodworks

Top Public Shareholders of Jubilant Foodworks

Key Growth Drivers for QSR Industry

Changing
demographic
Levels in
India

Activity in
QSR space
heating
up- eg. RJ
Corp, CCD
etc

Burgeoning
Middleclass

Growth in
Youth
Population

Rising
urbanization

Competitive Advantage for JFL

Increase in
number of
working
women
force

Changing
consumer
preferences
for Fast
food

Scalable
Business
Model

Operation
al
excellence
ith
minute or
Free
factor

High Same
Store Sales
Growth

Efficient
Supply
Chain
Managem
ent

Operating
Leverage
Future
expansion
plans

Overall, looking at the economic outlook of the country and the factors affecting the QSR industry, this industry is expected to continue its
on going trend of high growth. The Jubilant Foodworks ra ds Do i os Pizza a d Du ki Do uts ha i g high e pa sio pla s espe iall i
Tier-2 cities with the competitive advantages they have of operational excellence and scalability of business model gives an edge over other
competitors along with highly experienced and credible top management to guide.

References & Disclaimer

Summary

Disclaimer

http://www.indiastat.com/table/banksandfinancialinstitutions
/3/reservebankofindia/239/773441/data.aspx

These materials have been prepared by) for the

classroom purpose or potential client to whom such
materials are directly addressed and delivered (the
Co pa y in connection with an actual or potential
mandate or engagement and may not be used or relied
upon for any purpose other than as specifically
contemplated by a written agreement with us. These
materials are based on information provided by or on
behalf of the Company and/or other potential
transaction participants, from public sources or
otherwise reviewed by us.
We assumes no
responsibility for independent investigation or
verification of such information and has relied on such
information being complete and accurate in all respects

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