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Jubilant Foodworks Ltd.

BSE: 533155 Sector: Agri and agri inputs
NSE: JUBLFOOD ISIN Code: INE797F01012
BSE 00:00 | 24 Sep 4118.30 -58.70
(-1.41%)
OPEN

4199.00

HIGH

4199.00

LOW

4068.80

NSE 00:00 | 24 Sep 4116.95 -64.20
(-1.54%)
OPEN

4181.15

HIGH

4198.50

LOW

4064.35

OPEN 4199.00
PREVIOUS CLOSE 4177.00
VOLUME 10129
52-Week high 4271.00
52-Week low 2099.60
P/E 145.68
Mkt Cap.(Rs cr) 54,349
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 4199.00
CLOSE 4177.00
VOLUME 10129
52-Week high 4271.00
52-Week low 2099.60
P/E 145.68
Mkt Cap.(Rs cr) 54,349
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Jubilant Foodworks Ltd. (JUBLFOOD) - Company History

Jubilant FoodWorks Ltd (JFL) a Jubilant Bhartia Group Company is a food service company. The company has the exclusive rights to develop and operate Domino's Pizza brand in India Sri Lanka Bangladesh and Nepal. At present it operates in India Sri Lanka and has signed a joint venture for operating in Bangladesh. The company also has exclusive rights for developing and operating Dunkin' Donuts restaurants for India. The company has two strong international brands in its portfolio Domino's Pizza and Dunkin' Donuts addressing different food market segments. Domino's Pizza offers a menu of quality pizza and side dishes to their customers. As on March 31 2018 JFL had 1134 Domino's Pizza Restaurants across 266 cities and 37 Dunkin' Donuts Restaurants across 10 cities. JFL has 11 Commissaries/Supply Chain Centres (SCCs) at strategic locations around India. These serve as manufacturing and distribution facilities for DPI and DDI thus enabling the company to achieve economies of scale.The Domino's Pizza brand is owned by Domino's Pizza USA and is highly respected globally. Domino's Pizza USA is the recognised world leader in pizza delivery operating a network of company-owned and franchise-owned stores in the United States and international markets. Dunkin' Donuts USA is the world's leading baked goods and coffee chain.JFL's Domino's pizza stores in India are generally located in neighbourhood markets in urban areas. They also operate pizza stores located in food courts in shopping malls and in institutional campuses.Jubilant FoodWorks Ltd was incorporated on March 16 1995 as a private limited company with the name Domino's Pizza India Pvt Ltd. The company entered into a master franchise agreement with Domino's International for north and west regions in India. In January 1996 the company opened their first Domino's pizza store. In September 14 1996 the company was converted into a public limited company and the name was changed to Domino's Pizza India Ltd. In the year 1998 they extended master franchise agreement with Domino's International to whole of India and Nepal.In the year 2001 the company made a tie-up with Hindustan Coca-Cola Beverages Pvt Ltd. In the year 2003 they became the subsidiary of Jubilant Enpro Pvt Ltd. In the year 2004 they launched '30 minutes or free' campaign. In the year 2005 the company entered into master franchise agreement for Sri Lanka and Bangladesh. In the year 2009 the company launched 'Pizza Mania'. Also they began to offer pasta and choco lava cake to their customers as a side item. They opened 60 new stores during the financial year 2008-09.In September 17 2009 the company entered into a trademark license agreement with Domino's International whereby Domino's International conferred on the company a non-exclusive right to use the trademarks and service marks ('Domino's Trademarks') in India.In September 23 2009 the company entered into an agreement with Domino's International for the grant of the exclusive right and license to establish and operate a commissary and to sell and distribute products using the know-how in the Territory and the exclusive right and license to prepare process and produce Products using the technical knowledge in the Territory.In September 24 2009 the company changed their name from Domino's Pizza India Ltd to Jubilant FoodWorks Ltd. The company plans to open between 65 and 70 stores during the financial year 2009-10 of which they opened 31 stores as of November 30 2009 in the existing cities.As of November 30 2009 the company operated 286 stores in India located in 22 states and union territories including in 59 cities across the country and through a sub-franchisee DP Lanka five stores in Sri Lanka. As of November 30 2009 we did not operate any stores in Nepal and Bangladesh. Encouraged by the success of Domino's Pizza in India Jubilant FoodWorks (JFL) leveraged its experience and expertise in the food service industry to introduce Dunkin' Donuts in India in FY 2012. During the financial year ended 31 March 2014 Domino's Pizza India (DPI) successfully launched 150 new Domino's Pizza restaurants as against 111 restaurants in the previous year. A total of 27 new cities were added to DPI footprint during FY2014. During the year Domino's Pizza India captured the consumers' interest and market by launching the new indulgent Fresh Pan Pizzas Spicy Baked Chicken Lebanese rolls and Calzone Pockets. The company continued to work towards rejuvenating its brand with innovative initiatives like launch of Pizza Theatre and strengthened its consumer connect.DPI crossed the 600th restaurant milestone with the launch of its first Pizza Theatre at Vasant Kunj New Delhi in August 2013. DPI crossed 700th mark with its restaurant in Gurgaon in March 2014.During the year under review DPI adopted the Pizza Theatre' design - a new global Domino's Pizza Restaurant design. The design enhances the consumer engagement and experience by having a one of its kind open display kitchen and restaurant layout in the QSR category. Of the total restaurants opened in FY 2014 69 restaurants were on Pizza Theatre design.The subdued external environment resulted in moderation of Domino's Pizza Same Restaurant Sales Growth (SSG) from 16.2% in FY 2013 to 1.6% in FY 2014. The moderation is measured against the higher base due to the fast-paced growth witnessed year-on-year since FY 2010 and in the context of the overall economic scenario which was driven by cautious consumer spends.Dunkin' Donuts' restaurants offering a wide variety western all day part food menu including donuts coffee burgers sandwiches snacks and more continued its expansion plans. The company successfully launched 16 new Dunkin' Donuts restaurants during the year taking the total number to 26 restaurants as on March 31 2014. During the year Dunkin' Donuts' restaurants launched 'Get Your Mojo Back' positioning aimed to get Dunkin' Donuts better placed in the sweet spot between the QSR and the Caf markets.During the year under review Jubilant FoodWorks made higher investments in building the infrastructure necessary to meet the future requirements. While expanding and strengthening the existing manufacturing locations / commissaries - Noida Mohali Mumbai Kolkata and Bengaluru the company commenced work on three new commissaries namely Hyderabad Nagpur and Guwahati.Jubilant FoodWorks' Sri Lankan subsidiary Jubilant FoodWorks Lanka (Pvt.) Ltd. (JFLPL) expanded its base by opening 5 restaurants during FY2014 taking its total restaurant count to 11 as on March 31 2014. During the year under review JFLPL launched 3new products Pepper Chicken Drumsticks Rice and Fresh Pan Pizza which received encouraging response from the consumers. Though the overall sales grew JFLPL continued to incur losses. Raw material cost continued to be high due to inflation and increased duty on cheese. Decisions and strategic choices continued to be guided by the principle of systematic expansion backed by strong infrastructure.During the financial year ended 31 March 2015 Domino's India crossed the UK restaurant count and became the largest market for Domino's Pizza worldwide outside USA. During the year the company achieved its target of opening 150 new Domino's Pizza restaurants set at the start of the year. The company pursued steady expansion in 46 new cities during the year in a focused move aimed at countering the high level of cannibalisation in the major cities. During the year under review Domino's Pizza India (DPI) launched the highest number of products in its history creating more occasions for ordering from Domino's Pizza. DPI changed its home delivery policy during the year to allow home delivery of only side products too. The restrained external environment dampened Domino's Pizza Same Store Sales Growth (SSG) which remained flat at 0.05% in FY 2015 as against 1.6% in FY 2014. The SSG moved into positive territory from Q3 FY 2015 after being in the negative space for the previous four quarters.During the year Dunkin Donuts' expansion remained well on track. Enthused by the consumer's response the company set up 28 new restaurants in FY 2015 taking Dunkin Donuts tally to 54 restaurants in 19 cities as on March 31 2015. Resonating with the brand positioning of 'Get Your Mojo Back' Dunkin' Donuts launched several innovative products that can best - fulfill the evolving and emerging needs of the urban youth. The Crunchy Joe Burger Tough Guy Brute Burger Wicked Wraps and Not So Wicked Wraps Naughty Lucy Burger and a new range of Donuts are among the new products launched during the year to bring alive the distinct brand positioning. Dunkin' Donuts also extended the range of Dunkaccino Coffee with new flavours such as Mocha Chip Jamaican Rum and Almonds Dunkaccino. The beverage menu also saw the addition of two new - Green Iced Teas - Spiked Iced Tea and Green Iced Tea to beat the summer heat.Jubilant FoodWorks's new manufacturing capabilities known as commissaries/centralised food production facilities at Nagpur Guwahati and Hyderabad became operational in FY 2015.During the year under review Jubilant FoodWorks's wholly owned subsidiary Jubilant FoodWorks Lanka (Pvt.) Ltd. (JFLPL) launched 4 new Domino's Pizza Restaurants taking its total restaurant count to 15 as on March 31 2015. During the financial year ended 31 March 2016 Domino's Pizza India (DPI) continued on its strong growth path marked by the accomplishment of reaching 1000th restauant. With the 1000th restaurant India joins the USA where the brand has been operating since 1960 to become the only other country with over 1000 restaurants. Continuing with its systematic approach to expansion DPI achieved the target of opening 150 new restaurants. DPI entered 39 new cities during the year. During the year under review DPI launched Chef's range of exotic Italian pizzas and double crunch pizzas. In the first initiative of its kind DPI launched 100% Vegetarian Navaratri menu at select Restaurants to give consumers the freedom to enjoy their pizzas without any inhibitions which was extremely well-received. DPI launched a new mobile ordering application during FY 2016 that enables enhanced user interface and experience. The DPI website was also revamped to keep pace with evolving digital trends and to increase the convenience of ordering online. The Pizza Theatre design which has an open display kitchen was further upgraded and the new design - Pizza Theatre Plus was unveiled at the launch of the 1000th Restaurant. A new format - 'Domino's On-the-Go' was launched. These are located at transit points where footfalls are usually very high and average ticket price low. To ensure that orders can be turned around quickly these formats feature a shorter menu. Dunkin' Donuts India (DDI) on the other hand continued to expand gradually across existing and new cities in India. Consistent with the brand's strategy to steadily expand presence across new cities and simultaneously broaden accessibility at existing cities 20 new DDI Restaurants were opened during the year under review. During the year DDI decommissioned 3 restaurants and revised the restaurant opening target downwards. In Dunkin' Donuts focus was on innovation across all day part food items that resulted in latest innovation and menu addition which are Donut cakes marking the Company's entry into the packaged food segment. With a view to attract new consumers reinvigorate interest and drive repeat orders menu innovation were done with the launch of Too Much Burgers Voodoo Wraps Coolattas along with the fresh range of Coffees which received an outstanding consumer response.Jubilant FoodWorks' Same-Restaurant Sales Growth (SSG) stood at 3.2% in FY 2016 as against 0.05% growth in FY 2015.During the year under review Jubilant FoodWorks's wholly owned subsidiary Jubilant FoodWorks Lanka (Pvt.) Ltd. (JFLPL) continued to expand steadily Domino's Pizza brand in Sri Lanka. During the year JFLPL launched five new Domino's Pizza Restaurant taking its total Restaurant count to twenty as on March 31 2016. To bolster technology JFLPL successfully launched its Online Ordering (OLO) and the mobile app for Mobile ordering.FY 2017 was a year of designing and implementing strategy for driving the company's evolution to the next phase of profitable growth. During FY 2017 Jubilant FoodWorks continued to focus on optimum network expansion and driving technology platform to enhance the customer experience and improving operational efficiency. The company invested and implemented initiatives to deliver long-term growth for its business while closely managing the short-term events which influence performance. While the economic growth momentum was temporarily impacted with demonetization during the year the company sustained its focus on the cost rationalisation and improving efficiencies.Domino's Pizza and Dunkin' Donuts Restaurant network expansion was focused on alignment with the Return on Investment (ROI) norms of the company and the external operating environment. The company increased its reach amongst relevant consumers by entry of Domino's Pizza in the State of Nagaland. During FY 2017 Domino's Pizza India ()DPI) opened 103 new Restaurants and entered 29 new cities which have further broadened accessibility in existing geographies and established DPI's presence in new cities and towns. An important milestone of the year was the opening of the the1100th Restaurant. During the course of the year 14 DPI Restaurants were decommissioned guided by stringent ROI norms. During the year DPI won the bid to open a Restaurant at Agra Railway station and outside the Patna airport. DPI's Same Restaurant Sales Growth (SSG) for the year stood at negative 2.4%.With the launch of Burger Pizza the company aimed to grow its share in the all day individual consumption' occasion and further grow its share in the chained Indian Food Service Industry. Burger Pizza and Pizza Mania Extremes were among the two most innovative products launched targeted to delight consumers met with good response and achieved the internal launch objectives. Dunkin' Donuts India (DDI) on the other hand continued its efforts to strengthen its position in the sweet spot between the QSR and the Caf markets. Continuous and renewed efforts were made to improve beverage and donut sales and bringing value offerings to food range. A number of product launches were made to cater rapidly evolving consumer taste and preferences such as Big Joy Burger Munchkins Eggless Donuts Cakes and DunkyDoos - a new range of donuts for the young guests. The range of Big Joy Burger was extremely popular with the consumers. DDI followed a prudent and judicious expansion strategy with the focus of getting proper return on investment. 12 new Restaurants were opened during the year. Aligned to the Company's objective of profitable growth 20 Restaurants were decommissioned as they failed to deliver on the Company's expected ROI parameters.During the year under review Jubilant FoodWorks' subsidiary Jubilant FoodWorks Lanka (Private) Limited (JFLPL) launched 3 new Domino's Pizza Restaurant taking its total Restaurant count to 23 as on March 31 2017. Through steady expansion of the restaurant network new restaurants were launched in Kalutara Kotahena and Boralesgamuwa marking Domino's Pizza foray in these cities. In addition to providing consumers with differentiated and innovative choices the menu was revamped during the year and now it is catering completely to the Sri Lankan taste. Through ongoing aggressive marketing communication and promotion strategy together with enhancement of operational service level JFLPL aimed to reach out to more consumers and generate brand loyalty. The Restaurants maintained a healthy same Restaurant sales growth (SSG) of 20%.During the financial year ended 31 March 2018 Jubilant FoodWorks identified key driving the strategic pillars of product and innovation value for money customer experience digital and technology while bringing cost optimization with a clear focus on sustainable growth. The company's emphasis on driving the key strategic pillars translated into healthy same store sales growth YoY while setting the base for consistent growth in line with the potential of the Quick Service Restaurant (QSR) space. The lowering in rate of applicable GST to 5% allowed the company to demonstrate its commitment to deliver the best value proposition as the company passed on the benefits of lower tax rate to the customers while taking a small calibrated price increase on few products to partially cover for the input credit loss.Domino's Pizza India's (DPI) Same-Restaurant Sales Growth (SSG) witnessed a strong revival during the year at 13.9%. SSG is a key financial metric in the QSR industry and the recovery indicates increase in frequency and value of ordering by existing and new customers. During the year DPI continuously focused on Innovation for resonating with consumers' evolving tastes and meeting their expectations. With the launch of All New Domino's' Domino's Pizza unveiled its most significant product refresh with an across the board enhancement of its pizzas delighting consumers with the choicest taste and best quality. The upgrade in core pizzas saw massive acceptance as reflected in new consumer acquisition as well as increase in existing consumer's frequency. Further diversifying its side product offering DPI launched three new formats of chicken products with international flavours. The company successfully added 24 Restaurants during the year. DPI's network spanned across 266 cities as on March 31 2018 as against 264 cities as on March 31 2017. Seven Restaurants were decommissioned during the year as they failed to deliver on the Company's expected ROI parameters. As of March 31 2018 the DPI network comprised 1134 Restaurants as against 1117 Restaurants as on March 31 2017.Matching pace with the changing lifestyle of customers DPI launched late-night delivery across multiple cities. As on March 31 2018 this facility was available across 7 Cities and 52 Restaurants. This new growth vector created positive brand association and connect with younger audience.At Dunkin' Donuts India (DDI) a new focus was brought on beverage and donuts while food continued to be a strong play. The focused strategy of enhancing core offerings driving efficiencies along with shutdown of unprofitable stores led to significant reduction in DDI losses. DDI has also experimented with smaller Restaurant size. As an innovation DDI launched Value range of donuts and signature donuts including Chocotella White Choco Cheesecake Choco Symphony and Coffee Toffee. Shaken Iced Coffee Caramel Hazelnut Latte and Tiramisu Latte were among the new beverages launched during the year. On the food side Toasties (Chilli Cheese and Chicken) and Big Joy Mayo Burger were added to the menu. DDI drove Value for Money by introducing a range of donuts at Rs 49 and also introduced a Donut+Coffee combo at Rs 89 with the objective of seeding the Donuts + Coffee habit. DDI was cautious in its expansion strategy aligned to the company's overarching strategy of profitable growth. Five new Restaurants were opened in FY 2018 while 31 Restaurants were decommissioned. The total number of DDI Restaurants stood at 37 as on March 31 2018 as against 63 as on March 31 2017. In the fourth quarter of FY 2018 the Company commissioned its state-of-the-art facility in Greater Noida a prestigious accomplishment for the Company that will give a better overall efficiency at the commissary level as well. It is the largest facility in the entire Domino's Pizza worldwide as on date of report. The first to be fully owned and operated by Jubilant FoodWorks (JFL) the Greater Noida facility will be supplying food and non-food ingredients. It has the capacity to supply to around 550 DPI and 100 DDI Restaurants reducing the need for outsourcing. This highly automated facility will make greater cost and quality control possible.During the year ended 31 March 2018 the company's wholly owned subsidiary Jubilant FoodWorks Lanka (Private) Limited (JFLPL) launched one new Domino's Pizza Restaurant taking its total Restaurant count to 24 (twenty four) as on March 31 2018. In line with DPI Every Day Value proposition was also rolled out for Sri Lanka business. New pizzas and sides were introduced in the menu to fuel excitement among the consumers.During the year ended 31 March 2018 Jubilant FoodWorks announced joint venture with Golden Harvest QSR Ltd. (Golden Harvest) part of Golden Harvest group of Bangladesh to launch Domino's Pizza Restaurants in Bangladesh. For the purpose of this joint venture a private limited company Jubilant Golden Harvest Limited (JGHL) was incorporated. Jubilant FoodWorks will be the majority shareholder with 51% of the total shareholding while Golden Harvest will hold the balance 49% in the joint venture company.The Board of Directors of Jubilant FoodWorks at its meeting held on May 8 2018 recommended issue of bonus shares in the proportion of 1 equity share of Rs 10/- each fully paid up for every 1 equity share of Rs 10/- each fully paid up as on the record date fixed for this purpose.

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