Coimbatore: The production of cement from Reliance Cement Company Private Ltd, a subsidiary of Reliance Infrastructure Ltd (Reliance Infra), has begun from the first manufacturing unit at Butibori, Nagpur in Maharashtra.
The unit would essentially meet the needs of the market in Vidarbha, the company said in a communication to the stock exchanges.
RCC is building two cement plants with a total capacity of 10 mt in M.P. and Maharashtra with associated grinding plants. The strategy was to have clinker producing plants nearer to key raw material-limestone, and grinding units closer to the markets.
Sumit Banerjee, Vice-Chairman of RCC, explained that the company wanted to be counted among the top 5 cement producers in India in the next five years. Apart from the two projects each with a capacity of 5 million tonnes per annum, several other projects were under different stages of development.
Success in my Habit
Thursday, September 6, 2012
Suzlon arm wins Australia order
Mumbai: Suzlon Group’s subsidiary REpower Systems has a bagged an order worth Australian $ 260 million.
It will supply 131 MW of wind turbines to Meridian Energy, Australia.
The project, Mt Mercer wind farm project is based in Victoria. This is REpower’s first contract with Meridian Energy and the company’s largest ‘supply & install’ contract for its MM series turbines in Australia. The turbines are scheduled for commissioning between September 2013 and January 2015, Suzlon said.
Tulsi Tanti, Chairman, Suzlon Group: “The combination of our product portfolio; our deep experience in installing and operating projects in very challenging conditions; and our exceptional operating record, with turbine availability consistently exceeding the industry average, makes us the partner of choice in the Australian market.”
It will supply 131 MW of wind turbines to Meridian Energy, Australia.
The project, Mt Mercer wind farm project is based in Victoria. This is REpower’s first contract with Meridian Energy and the company’s largest ‘supply & install’ contract for its MM series turbines in Australia. The turbines are scheduled for commissioning between September 2013 and January 2015, Suzlon said.
Tulsi Tanti, Chairman, Suzlon Group: “The combination of our product portfolio; our deep experience in installing and operating projects in very challenging conditions; and our exceptional operating record, with turbine availability consistently exceeding the industry average, makes us the partner of choice in the Australian market.”
SIDBI enters into loan agreement with KFW Germany for MSME innovation finance programme
Mumbai: SIDBI has entered into a loan agreement with KFW Germany for 53 million Euros for MSME innovation finance programme.
The MSME or medium, small and micro enterprises Innovation Finance Programme has been formulated to promote entrepreneurial innovations particularly those relating to clean technologies.
Another objective of the program is to catalyze the development of financing instruments specifically tailored to the requirements of innovative MSMEs.
SIDBI, in its press note said, the assistance will be provided in the form of loan / risk capital assistance / quasi equity products specifically tailored to meet the needs of innovative MSMEs.
SIDBI was established on April 2, 1990, under the Small Industries Development Bank of India Act, 1989. It is the principal financial institution for the promotion, financing and development of industry in the micro, small & medium enterprises sector and to co-ordinate the functions of institutions engaged in similar activities.
The MSME or medium, small and micro enterprises Innovation Finance Programme has been formulated to promote entrepreneurial innovations particularly those relating to clean technologies.
Another objective of the program is to catalyze the development of financing instruments specifically tailored to the requirements of innovative MSMEs.
SIDBI, in its press note said, the assistance will be provided in the form of loan / risk capital assistance / quasi equity products specifically tailored to meet the needs of innovative MSMEs.
SIDBI was established on April 2, 1990, under the Small Industries Development Bank of India Act, 1989. It is the principal financial institution for the promotion, financing and development of industry in the micro, small & medium enterprises sector and to co-ordinate the functions of institutions engaged in similar activities.
India explores trade options with Myanmar
Kolkata: A delegation led by the Indian Chamber of Commerce had visited Myanmar last month to explore bilateral trade opportunities with the country. According to a release, a 22-member delegation including ICC director general, Rajeev Singh and representatives from PWC, Ultratech Cements, Finolex Cables and Bangur Group had visited Myanmar. Jointly organised by Indian Embassy in Yangon and Consulate General of India, Mandalay, the meeting discussed issues relating to trade facilitation through setting up world-class integrated facilities at “Land Custom Stations”, development of “Border Haats”, establishment of “Joint Trade and Investment Forum” and regularisation of trade exchanges.
The ICC delegation saw a good prospect in infrastructure development for transport and tourism sectors with implementation of signed Air Service agreements between India and Myanmar, the release added
The ICC delegation saw a good prospect in infrastructure development for transport and tourism sectors with implementation of signed Air Service agreements between India and Myanmar, the release added
Monday, September 3, 2012
EMC ties up with Netmagic Solutions
As a part of this tie-up, Netmagic will consolidate IT infrastructure that is hosted on private or public cloud and consolidate it into a hybrid cloud computing environment. A hybrid cloud environment helps in a mix and match of public and private IT infrastructure that can be hosted and accessed as per their requirements.
Further Netmagic cloud computing service called SimpliCloud is an Infrastructure-as-a-Service platform that is powered by EMC storage for public cloud computing offerings. Also, it will customise and dedicate storage offerings with hosting and management capabilities along with disaster recovery, replication and software monitoring capabilities.
The cloud-based services offered by Netmagic Solutions will address the mid-market and enterprise segments.
“Together, EMC and Netmagic Solutions will focus on addressing customer needs for reliable cloud services, especially in verticals such as media, entertainment, BFSI, government and IT & ITES which are high growth for us,’’ said Rajesh Janey, President, EMC India & SAARC.
The programme will provide sales, marketing, planning and education to partners as they invest in EMC solutions to deliver cloud services to the global IT market.
Also available are business development and services creation resources to enable partners to develop differentiated offerings built on EMC technology, marketing support including marketing development funds, campaigns, field execution and sales enablement tools.
Leading Chinese companies eye greenfield projects in Gujarat
Ahmedabad: Four leading Chinese companies will visit Ahmedabad in September to explore investment opportunities in Gujarat.
The companies- Wuxi Xinje Automation, Sunfar, Estun Automation and Zhejiang Chint Electric Co-are eyeing investments in greenfield projects and partnerships in Gujarat.
The Chinese companies will meet entrepreneurs in Gujarat at a business conference organized by India China Economic & Cultural Council (ICEC) on September 12, 2012.
Maheshwar Sahu, principal secretary-industries & mines, Government of Gujarat along with Peng Gang, commercial counselor, embassy of the People's Republic of China along will address the meet of 100 participants.
As part of their first visit to the state, the Chinese companies will make presentations on their profile, products and business opportunities at the conference.
"ICEC plans to install an operational windmill at the event to put across the message of a clean and green Gujarat," said Jagat Shah, chairman, ICEC-Gujarat chapter.
Zhejiang Chint Electric Co is a manufacturer of switchgear, circuit breakers and distribution box besides many other electrical products. The company, which had taken up the electrification project for Beijing Olympic Games 2008, is looking at making investments in the manufacturing sector in India. Sunfar is a maker of invertors and is interested in creating a distribution network in India besides setting up greenfield projects.
Estun Automation, which is a manufacturer of servo motors and industrial robotics, is exploring a greenfield project and distribution network. Wuxi Xinje Automation, which is the manufacturer of human machine interface, touch panel, touch screen, touch LCD, touch screen monitor among other technology, is also looking at Gujarat for making investments.
The companies- Wuxi Xinje Automation, Sunfar, Estun Automation and Zhejiang Chint Electric Co-are eyeing investments in greenfield projects and partnerships in Gujarat.
The Chinese companies will meet entrepreneurs in Gujarat at a business conference organized by India China Economic & Cultural Council (ICEC) on September 12, 2012.
Maheshwar Sahu, principal secretary-industries & mines, Government of Gujarat along with Peng Gang, commercial counselor, embassy of the People's Republic of China along will address the meet of 100 participants.
As part of their first visit to the state, the Chinese companies will make presentations on their profile, products and business opportunities at the conference.
"ICEC plans to install an operational windmill at the event to put across the message of a clean and green Gujarat," said Jagat Shah, chairman, ICEC-Gujarat chapter.
Zhejiang Chint Electric Co is a manufacturer of switchgear, circuit breakers and distribution box besides many other electrical products. The company, which had taken up the electrification project for Beijing Olympic Games 2008, is looking at making investments in the manufacturing sector in India. Sunfar is a maker of invertors and is interested in creating a distribution network in India besides setting up greenfield projects.
Estun Automation, which is a manufacturer of servo motors and industrial robotics, is exploring a greenfield project and distribution network. Wuxi Xinje Automation, which is the manufacturer of human machine interface, touch panel, touch screen, touch LCD, touch screen monitor among other technology, is also looking at Gujarat for making investments.
Essar to retail fuel in Kenya
Mumbai: After Indian Oil Corporation’s decision to sell petroleum products abroad, London-listed Essar Energy is following suit. Essar, the largest private fuel retailer in the country, would set up retail outlets in Kenya.
The company has set up a pilot fuel retail outlet in the African country, where the likes of KenolKobil are already present. “Essar has set up a pilot retail outlet in Kenya under the franchisee model,” an Essar Energy spokesperson stated in an email response.
Fuel for the outlets would be sourced from Essar’s refinery in Kenya. The retail outlets would be set up under the Essar brand; the company wouldn’t partner any local company for this. “Currently, we are studying the market and, depending on the outcome, may undertake modest expansion,” the spokesperson added.
As part of its global expansion plans, Essar Energy had acquired 50 per cent stake in Kenya Petroleum Refineries (KPRL) in 2009 from Royal Dutch Shell, BP and Chevron. The government of Kenya owns the remaining 50 per cent in the company’s equity. The refinery processes crude oil primarily imported from the Gulf region for marketing companies. KPRL’s primary products include liquefied petroleum gas, unleaded premium gasoline, regular petrol, automotive gasoil, industrial diesel, fuel oil and special products like bitumen and grease.
In June, KPRL had signed a financing agreement with Standard Chartered Bank to help the refinery roll out its business transformation plan. The agreement would enable KPRL to access $250 million and transform the toll refinery to a merchant refinery. “This facility would be utilised for our working capital requirements. We will now be able to procure oil, process it and sell the petroleum products to marketing companies,” said Brij Mohan Bansal, chief executive, KPRL.
Currently, KPRL receives crude oil from oil marketing companies. A merchant refinery would enable KPRL to purchase its own crude oil.
The refinery currently processes 1.6 million tonnes of crude oil a year. After the transition, it would process Murban crude from the United Arab Emirates. It would also be able to handle crude oil from cheaper sources. The refinery would continue to focus on servicing the main Kenyan market, the most dominant in the region. Kenya has a demand of about 4 million cubic metres per year.
Essar Energy also owns Stanlow refinery in the UK, which it bought on July 31, 2011, for $350 million.
The refinery has a nameplate capacity of 2,96,000 barrels per stream day, though currently, it operates at about 70 per cent of this level. The refinery is UK’s second-largest and helps meet about 15 per cent of the country’s gasoline requirements, along with large volumes of diesel and jet fuel. Refined fuels from Stanlow are distributed across the UK, mainly by roads and pipelines.
After the company had announced its results for the quarter ended June, it had said it would not expand its retail operations in India till there was clarity on pricing of diesel in the country.
Essar Oil, a unit of Essar Energy through a franchise model, operates about 1,400 retail outlets, with 200 outlets under various stages of construction. The fuel retail outlets across India sell gasoline and gasoil under the Essar brand. The company is also increasing non-fuel retailing activities in its portfolio of retail outlets to provide an additional source of revenue.
The company has set up a pilot fuel retail outlet in the African country, where the likes of KenolKobil are already present. “Essar has set up a pilot retail outlet in Kenya under the franchisee model,” an Essar Energy spokesperson stated in an email response.
Fuel for the outlets would be sourced from Essar’s refinery in Kenya. The retail outlets would be set up under the Essar brand; the company wouldn’t partner any local company for this. “Currently, we are studying the market and, depending on the outcome, may undertake modest expansion,” the spokesperson added.
As part of its global expansion plans, Essar Energy had acquired 50 per cent stake in Kenya Petroleum Refineries (KPRL) in 2009 from Royal Dutch Shell, BP and Chevron. The government of Kenya owns the remaining 50 per cent in the company’s equity. The refinery processes crude oil primarily imported from the Gulf region for marketing companies. KPRL’s primary products include liquefied petroleum gas, unleaded premium gasoline, regular petrol, automotive gasoil, industrial diesel, fuel oil and special products like bitumen and grease.
In June, KPRL had signed a financing agreement with Standard Chartered Bank to help the refinery roll out its business transformation plan. The agreement would enable KPRL to access $250 million and transform the toll refinery to a merchant refinery. “This facility would be utilised for our working capital requirements. We will now be able to procure oil, process it and sell the petroleum products to marketing companies,” said Brij Mohan Bansal, chief executive, KPRL.
Currently, KPRL receives crude oil from oil marketing companies. A merchant refinery would enable KPRL to purchase its own crude oil.
The refinery currently processes 1.6 million tonnes of crude oil a year. After the transition, it would process Murban crude from the United Arab Emirates. It would also be able to handle crude oil from cheaper sources. The refinery would continue to focus on servicing the main Kenyan market, the most dominant in the region. Kenya has a demand of about 4 million cubic metres per year.
Essar Energy also owns Stanlow refinery in the UK, which it bought on July 31, 2011, for $350 million.
The refinery has a nameplate capacity of 2,96,000 barrels per stream day, though currently, it operates at about 70 per cent of this level. The refinery is UK’s second-largest and helps meet about 15 per cent of the country’s gasoline requirements, along with large volumes of diesel and jet fuel. Refined fuels from Stanlow are distributed across the UK, mainly by roads and pipelines.
After the company had announced its results for the quarter ended June, it had said it would not expand its retail operations in India till there was clarity on pricing of diesel in the country.
Essar Oil, a unit of Essar Energy through a franchise model, operates about 1,400 retail outlets, with 200 outlets under various stages of construction. The fuel retail outlets across India sell gasoline and gasoil under the Essar brand. The company is also increasing non-fuel retailing activities in its portfolio of retail outlets to provide an additional source of revenue.
Indian food business now worth Rs 75,000 crore, growing at healthy rate
In foodie terms, it could best be described as a melting pot. The second Indian Restaurant Congress held in New Delhi last week had venture capitalists, marketing gurus, social media specialists, chefs and restaurateurs rubbing shoulders with each other — all with food on their mind. The business of food, that is. What was served to them would have perhaps whetted their appetite for more. According to a report released at the Congress, the Indian food services industry is worth nearly Rs 75,000 crore now and is growing at a healthy compounded annual growth rate of 17%. It is likely to reach Rs 1,37,000 crore by 2015.
For many years, the food business has been seen as a tempting and lucrative opportunity — reflected in the fact that opening a restaurant tops the wish-list of a number of people. But what would make the next few years exciting for the sector is the way the market is rapidly getting organized. Gaurav Marya, president of Franchise India that prepared the report, says that even though 70% of the market is currently dominated by unorganized players, the organized segment has witnessed double-digit growth across formats, especially quick service restaurants driven by international chains, and causal and fine dining outlets dominated by Indian and private equity majors. "In the future, the organized market is expected to grow even faster — at around 20 to 25% per annum," he says.
The growth is accentuated by factors that have been in existence in India since the past few years — namely rise in disposable incomes and families becoming progressively nuclear. This captive audience has led to many investors drooling over the great Indian restaurant bazaar. "With the growing popularity of the food and beverage businesses in India , the investment community has made significant investments here. Last year, these businesses received $ 256mn of funding overall, while this year has already seen $ 43mn being invested," says Sandeep Kohli, who, as the former India head of Yum Restaurants , brought brands like KFC and Pizza Hut to the country.
The proliferation of more outlets, especially across popular categories like quick service or fast food, casual, fine dining as well as food courts may mean more people heading out of home to grab a bite. But it also means the industry has to pull up its socks to meet higher customer expectations . "With a smarter consumer who has multiple options, quality control has to be high and sustainable because consumer loyalty is no longer a given in a cluttered market place," says Kohli.
With increased competition, meeting customer expectations is going to be a challenge, especially for restaurants which are looking at ramping up their operations to reach a wider customer base. "The key area for a restaurant chain is to ensure consistency in service and food standards," says Kabir Advani, managing director of Berco's that serves Chinese and Thai, and has 15 outlets spread across the National Capital Region.
"A person visiting our restaurant in Connaught Place from his office during lunch may visit our Gurgaon outlet for dinner with his family. Naturally, he will expect similar quality. Our job is to ensure we match his expectations wherever he goes." But in order to do that, a good team with an efficient manager and a skilled chef is essential. As the sector expands, retaining talent — a key attribute for the success of a restaurant — is going to be a major headache for restaurateurs. Industry estimates put the requirement of trained manpower in the business at around 30 lakh within the next few years, a number which will grow further as demand increases. Pankaj Chaddah, cofounder of restaurant review site Zomato, says that the industry urgently needs to invest in training and making jobs more lucrative. "There is very little loyalty towards any employer from the staff and they shift for small raises. Even students from hotel management institutes are opting for jobs in other industries related to the service sector ."
Celebrity chef Sanjeev Kapoor, who also runs a number of successful multi-brand restaurants, says that the only way to counter this issue is to shift the focus from "customers first" to "employees first." "If your employees are happy, your customers would be happy," he says. "Most of the new entrants to the business are penny wise pound foolish , where they would invest lakhs of rupees to bring in imported lights for their outlet, but would be reluctant to pay Rs 50,000 a month to an effective manager."
Poor employee retention has led to many restaurants shutting shop quickly. But another bottleneck for the industry is the high value of real estate, especially rentals in malls where footfalls might not justify cost of operations. Restaurateurs are working around this problem by opting for revenue-sharing arrangements with landlords. "Partnering with real estate owners is the only viable business model for the future, otherwise high land cost can easily bleed a restaurant," says Rajeev Panjwani , vice-president of the National Restaurant Association of India.
Over-expectation is yet another stumbling block. Kapoor says that most people don't realize that they are getting into a 365-day-a-year job with no holidays.
"Most of the growth is being driven by new entrants who are cash-rich but glamour struck," he says. "They are not aware of the hard side of the business and eventually phase out because of excessive investments in their projects and over estimated sales."
But despite bottlenecks and the inherent risks, it's an exciting time to be in the food business. Chennai-based Mohammed Ali, who runs an online community of people passionate about food, compares it to a marriage. "There are various phases to it — some sweet, some bittersweet . At the end, what counts is passion and, of course, good sense."
A recipe that those eyeing the restaurant pie can take note of. Look out for the burns, though.
For many years, the food business has been seen as a tempting and lucrative opportunity — reflected in the fact that opening a restaurant tops the wish-list of a number of people. But what would make the next few years exciting for the sector is the way the market is rapidly getting organized. Gaurav Marya, president of Franchise India that prepared the report, says that even though 70% of the market is currently dominated by unorganized players, the organized segment has witnessed double-digit growth across formats, especially quick service restaurants driven by international chains, and causal and fine dining outlets dominated by Indian and private equity majors. "In the future, the organized market is expected to grow even faster — at around 20 to 25% per annum," he says.
The growth is accentuated by factors that have been in existence in India since the past few years — namely rise in disposable incomes and families becoming progressively nuclear. This captive audience has led to many investors drooling over the great Indian restaurant bazaar. "With the growing popularity of the food and beverage businesses in India , the investment community has made significant investments here. Last year, these businesses received $ 256mn of funding overall, while this year has already seen $ 43mn being invested," says Sandeep Kohli, who, as the former India head of Yum Restaurants , brought brands like KFC and Pizza Hut to the country.
The proliferation of more outlets, especially across popular categories like quick service or fast food, casual, fine dining as well as food courts may mean more people heading out of home to grab a bite. But it also means the industry has to pull up its socks to meet higher customer expectations . "With a smarter consumer who has multiple options, quality control has to be high and sustainable because consumer loyalty is no longer a given in a cluttered market place," says Kohli.
With increased competition, meeting customer expectations is going to be a challenge, especially for restaurants which are looking at ramping up their operations to reach a wider customer base. "The key area for a restaurant chain is to ensure consistency in service and food standards," says Kabir Advani, managing director of Berco's that serves Chinese and Thai, and has 15 outlets spread across the National Capital Region.
"A person visiting our restaurant in Connaught Place from his office during lunch may visit our Gurgaon outlet for dinner with his family. Naturally, he will expect similar quality. Our job is to ensure we match his expectations wherever he goes." But in order to do that, a good team with an efficient manager and a skilled chef is essential. As the sector expands, retaining talent — a key attribute for the success of a restaurant — is going to be a major headache for restaurateurs. Industry estimates put the requirement of trained manpower in the business at around 30 lakh within the next few years, a number which will grow further as demand increases. Pankaj Chaddah, cofounder of restaurant review site Zomato, says that the industry urgently needs to invest in training and making jobs more lucrative. "There is very little loyalty towards any employer from the staff and they shift for small raises. Even students from hotel management institutes are opting for jobs in other industries related to the service sector ."
Celebrity chef Sanjeev Kapoor, who also runs a number of successful multi-brand restaurants, says that the only way to counter this issue is to shift the focus from "customers first" to "employees first." "If your employees are happy, your customers would be happy," he says. "Most of the new entrants to the business are penny wise pound foolish , where they would invest lakhs of rupees to bring in imported lights for their outlet, but would be reluctant to pay Rs 50,000 a month to an effective manager."
Poor employee retention has led to many restaurants shutting shop quickly. But another bottleneck for the industry is the high value of real estate, especially rentals in malls where footfalls might not justify cost of operations. Restaurateurs are working around this problem by opting for revenue-sharing arrangements with landlords. "Partnering with real estate owners is the only viable business model for the future, otherwise high land cost can easily bleed a restaurant," says Rajeev Panjwani , vice-president of the National Restaurant Association of India.
Over-expectation is yet another stumbling block. Kapoor says that most people don't realize that they are getting into a 365-day-a-year job with no holidays.
"Most of the growth is being driven by new entrants who are cash-rich but glamour struck," he says. "They are not aware of the hard side of the business and eventually phase out because of excessive investments in their projects and over estimated sales."
But despite bottlenecks and the inherent risks, it's an exciting time to be in the food business. Chennai-based Mohammed Ali, who runs an online community of people passionate about food, compares it to a marriage. "There are various phases to it — some sweet, some bittersweet . At the end, what counts is passion and, of course, good sense."
A recipe that those eyeing the restaurant pie can take note of. Look out for the burns, though.
Thailand seeks tie-ups in tourism, education
Krich Attitkaew, president of the Thailand-India Parliamentarians Friendship Group, said Indian students can study in Thailand with scholarship.
He invited business people from Kerala to Thailand to understand the culture and traditions of that country. He said that Thailand is seeking cooperation with Kerala in education and tourism areas.
There is scope for business cooperation with India and Thailand in areas of chemical industry, seafood products, machine parts, gems and jewellery, education, tourism, food and edible items and logistics, said Nitipoom Navaratna, vice-president of the Thailand-India Parliamentarians Friendship Group.
India and Thailand have enjoyed a close and mutually enriching relationship for over a millennium and the friendship is growing even today, K.N. Marzook, chairman, KCCI, said.
A total of 250,000 Indians live in Thailand contributing to the growth of the Thai economy. It is heartening to learn that India and Thailand would work together to double the bilateral trade to around $14 billion by 2014, he added.
Pusadee Tamthai, Prasongsak Boondej and Somchat Panapat, executive committee members of Thailand-India Parliamentarians Friendship Group, and Deepak L. Aswani, director, KCCI, also addressed the gathering.
Saturday, September 1, 2012
India fastest growing market for Domino's
New Delhi: Despite a palpable slowdown in the eating out industry across the globe, India has emerged as the fastest growing market for Domino's, outpacing US, which is the largest market for the pizza chain major across 73 countries where it has presence. India recorded an annual growth rate of nearly 50% for Domino's for the fifth consecutive year.
"India has been performing fabulously for us. We are seeing some pressure in western Europe especially, where it has been a very tough economic year for us," Domino's executive vice president (international) Richard E Allison Jr said. India, which accounts for 5% of Domino's' global sales, is among the top five markets for the US-based company. In terms of store counts too, India has registered the highest growth among all other markets.
The brand added 75 stores in India in calendar year 2011 taking the total number to 500. It is planning to increase the number by 100 in the current financial year. The company, which currently competes with other food chains such as Pizza Hut and Papa John's, commands around 55% share of the Rs 1,800 crore pizza industry in the country.
With only 10-15% of the industry organized, Allison is optimistic on increasing its market share by increased accessibility to consumers. The company will invest over Rs 150 crore in India this financial year, up from the Rs 111 crore it had invested last year. Like most other companies in the quick service restaurant space, Domino's too reported a decline in the same store sales growth in the April to June quarter to 22.3% from 36.7% in the corresponding period last year.
With consumer spending getting more discretionary, the brand has pushed price hikes, which normally happen in the first quarter, to the second quarter of the current fiscal year.
The company is also focusing on value offerings in a bid to widen its consumer base in the country. "We have to think about the product pricing always. The game is all about value pricing. We are only focusing on increasing our market share in India."
"India has been performing fabulously for us. We are seeing some pressure in western Europe especially, where it has been a very tough economic year for us," Domino's executive vice president (international) Richard E Allison Jr said. India, which accounts for 5% of Domino's' global sales, is among the top five markets for the US-based company. In terms of store counts too, India has registered the highest growth among all other markets.
The brand added 75 stores in India in calendar year 2011 taking the total number to 500. It is planning to increase the number by 100 in the current financial year. The company, which currently competes with other food chains such as Pizza Hut and Papa John's, commands around 55% share of the Rs 1,800 crore pizza industry in the country.
With only 10-15% of the industry organized, Allison is optimistic on increasing its market share by increased accessibility to consumers. The company will invest over Rs 150 crore in India this financial year, up from the Rs 111 crore it had invested last year. Like most other companies in the quick service restaurant space, Domino's too reported a decline in the same store sales growth in the April to June quarter to 22.3% from 36.7% in the corresponding period last year.
With consumer spending getting more discretionary, the brand has pushed price hikes, which normally happen in the first quarter, to the second quarter of the current fiscal year.
The company is also focusing on value offerings in a bid to widen its consumer base in the country. "We have to think about the product pricing always. The game is all about value pricing. We are only focusing on increasing our market share in India."
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