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| Goli Vada Pav to add more outlets in south |
| Gireesh Babu / Chennai Oct 28, 2011, 00:41 IST |
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Mumbai-based Goli Vada Pav Pvt Ltd, a chain store offering Mumbai's local snack, Vada Pav, is planning to expand its presence in south India as part of its efforts to reach target of around 500 stores all over the country in the next five years. The company, which currently has Rs 20-22 crore turnover, expects to grow to around Rs 150 crore business in five years.
Speaking to Business Standard on the sidelines of the Youth to Business Forum, a platform for graduate-level students to meet corporates, organised by international students' organisation AIESEC, Venkatesh Iyer, CEO and MD, Goli Vada Pav Pvt Ltd, said, “We have 125 stores at present and our target is to expand to 500 outlets in the next five years. In the south, we will have 40 stores in Chennai alone and 20 more in Bangalore in another two years' time.”
Capex required per Vada Pav store would be around Rs 8-10 lakh, which would be invested by the franchisee, while the product would be supplied by the company for each of the stores. It has launched two stores in Tamil Nadu, one in Coimbatore and another one in Chennai, as pilot project in last one year.
It is looking for master franchisee arrangements, through which each master franchisee has to manage 10 stores, in Chennai. The company already has a total of 30 stores in Karnataka of which 20 are in Bangalore. It has three stores in Hyderabad.
It has exclusive outsourcing tie up with Vista Processed Foods Pvt Ltd, suppliers of chicken and vegetable range of products to McDonald's, and currently source products to all its markets including Tamil Nadu, from the latter's Mumbai facility.
Though the current plant has a capacity to produce food items to cater the expected 500 stores, it is planning to serve the south and north markets from plants set up in these regions. This would help the company to reduce the logistic issues in transporting food products over long distances. A plant would be set up Karnataka to cater to the south Indian market, he added.
In next five years, the company would have presence in New Delhi, Uttar Pradesh, Punjab and Rajasthan, while in the south, it is looking at expansion in Karnataka, Tamil Nadu and Andhra Pradesh. In West, it would increase number of stores in Maharashtra, Gujarat and Madhya Pradesh, by the time, he added.
It is to be noted that the company has raised Rs 21 crore from VentureEast to invest in skill development of manpower and establishing an IT system. The company, established in 2004, has presence in 30 cities in four states, at present. It has so far sold around 4.5 crore vada pavs through all its outlets so far, said Iyer.
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