Jubilant Food works

Company Analysis

Made by:- AVI PIPADA

MET BANDRA (W)

JUBILIANT BHARTIA GROUP

Fast Food Industry in India

OrganisedDining

Bars and

Lounges

Quick Service Restaur

ants (Qsr’s)

Food Cour

ts

Cafes

Kiosks

UnorganisedDhabas Roadside

eateries

Problems Environmental friendly products cost high

Balance between societal expectation and companies economic objectives

Trends Health related issues

Marketing to Children

Low level customer commitment

Value added technology services

Attracting different segments of market

Growth Drivers

Age Composition in India

16%

36%28%

10% 11%

18-20 yrs

21-30 yrs

31-40yrs

Above 40

Below 18

Consumers Spending Capacity

15%

24%

4%

8%6%

26%

18%

Sales

housingfood entertainmenteducationhealthcaremisc.savings

History of Jubilant Food Works Ltd.

Founded in 1995

First Domino’s pizza store - January 1996.

1996- company was converted into a public limited company and the name was changed to Domino's Pizza India Ltd.

September 24, 2009- the company changed their name from Domino's Pizza India Ltd to Jubilant Foodworks Ltd.

Company Profile

Largest pizza chain

Offers a menu of quality pizza and side dishes to their customers.

Operate their stores pursuant to a Master Franchise Agreement with Domino's International.

Operational excellence.

Management Team

Chairmen

Mr. Shyam S. Bhartia

Mr. Hari S. Bhartia

Board of Directors

Mr. Ajay Kaul Mrs. Rami Nirula Mr. Vijay Marwaha

Product Line

PizzaPastaGarlic BreadChocoLavaDonuts

Extra Cheeze on the Pizza...

Amongst Top 5 in Global Dominos Pizzas.70% Market Share in Pizza Home Delivery Segment.4 out of the 5 busiest stores in Domino’s Pizza world

are from India. Average 1.39 Lakh Pizzas is sold by per Domino’s

Store.Robust Supply Chain ManagementApprox 15000 employees as on 31/03/201354% market share in organised pizza market.1st Brand in Food Service to launch an Online

Ordering platform in India

Major Players in Fast Food

Domino’s PizzaPizza HutSmokin Joe’sGarcias PizzaKFCSubway

Market Share in delivery system

DOMINOS

PIZZA HUT

SMOKIN JOES GARCIAS

65%

20%

7%2%

Top Line Analysis

FY 08-09 FY 09-10 FY 10-11 FY 11-12 FY 12-130

200

400

600

800

1000

1200

236.03313.91

475.52

765.24

1017.36

Net Sales

Am

ou

nt

in R

s C

r.

Highlights of F.Y 2012-2013

Particulars 2012-2013(₹ in Cr)

2011-2012(₹ in Cr)

Total Income1018.52 767.05

Less :- Expenditure 826.29 644.95

Operating Profit 192.85 120.54

Less :- Depreciation 37.57 29.34

Less :- Interest 0 0.34

Profit Before Tax 154.66 92.42

Less :- Tax 49.79 20.43

Profit After Tax (Net Profit)

105.64 72

How Every Rupee earned is spent ?

Raw Ma-terials35%

Power & Fuel5%

Employee Cost21%Other Manufac-

turing Expenses0%

Selling and Admin Ex-

penses20%

Miscellaneous Expenses

8%

Depreciation4%

Tax5%

Sales

Operating Profit Margin

FY 08-09 FY 09-10 FY 10-11 FY 11-12 FY 12-130

20

40

60

80

100

120

140

160

180

200

26.8534.19

66.94

120.54

192.85

Profit Margin

Am

ou

nt

in R

s C

r.

Bottom Line Analysis

FY 08-09

FY 09-10

FY 10-11

FY 10-11

FY 11-12

0

20

40

60

80

100

120

7.76 7.3

32.97

72

105.64

Comparative Net Profit Analysis

Net Profit

Am

ou

nt

in R

s C

r

Earnings Per Share &

Dividend Per Share

FY 08-09

FY 09-10

FY 10-11

FY 11-12

FY 12-13

1.33

1.26

5.18

11.16

16.23

0

0

0

0

0

Chart Title

DPS EPS

Am

ou

nt

in ₹

/sh

are

Book Value Per Share

FY 08-09 FY 09-10 FY 10-11 FY 11-12 FY 12-130

5

10

15

20

25

30

35

40

45

50

Am

ou

nt

in ₹

/sh

are

.

Financial Leverage

FY 08-09

FY 09-10

FY 10-11

FY 11-12

FY 12-13

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50 4.214.44

1.07 1.00 1.00

Financial Leverage

Current Ratio Quick Ratio

FY 09-10

FY 10-11

FY 11-12

FY 12-13

0

0.2

0.4

0.6

0.8

0.720.780.88

0.59

Current Ratio

Current Ratio

FY 09-10

FY 10-11

FY 11-12

FY 12-13

0

0.2

0.4

0.6

0.8

0.660.680.72

0.45

Quick Ratio

Quick Ratio

Liquidity Analysis

Debtors Turnover Ratio

FY 09-10

FY 10-11

FY 11-12

FY 12-13

259.17

230.93

206.59

187.15

Debtors Turnover Ratio

Asset Turnover Ratio

FY 09-10 FY 10-11 FY 11-12 FY 12-130

1

2

3

4

5 Asset Turnover Ratio 4.14

Asset Turnover Ratio

Return on Capital Employed

Return on Networth

FY 10-11

FY 11-12

FY 12-13

0

10

20

30

40

50

16.44

33.91

48.67ROE %

ROE %

FY 10-11

FY 11-12

FY 12-13

05

10152025303540

Return on Networth %

Return on Networth %

Return Analysis

Co-relation with Sensex

Returns on Benchmark Index

Jubilant Performance in SecondaryCapital Market

Company Equity Share price comparison with Sensex

Market Price as on 1st Oct 2013

Price to Earning Comparison as on 31/03/2013

Category 1

0

20

40

60

80

Industry P/E

Jubilant P/E

Industry P/E 34.9

Jubilant P/E 76.56

Chart Title

Axis Title

Shareholders Holding Pattern

57%,

38%2%

2%

1% Promoters

FIICorporate BodiesIndian PublicOthers

Competitive Analysis

Brand No. of Stores Cities Format

Dominos 439 100 Own stores

Pizza Hut 180 56 Franchisee

Smokin’ Joe’s 42 23 Franchisee

Garcia’s Pizza 20 1 Own+Franchisee

Differentiation Strategies adopted by Dominos and Pizza Hut.

Dominos Pizza Hut

Differentiation Strategy

Delivery Innovation

Competitive advantage

Favourable Pricing- value for money

Focused on Quality

Store Location Located near Target Market

Located at up Markets

Format Delivery and take-away

‘Sit & Dine’

Tag line “Hungry Kya?”, “30 minutes or free” and “Khushiyon ki Home Delivery”

“good times starts with great pizzas”

Price Range Rs. 39-260 Rs.75--380

Future Prospects

Plans to diversify into non food business

Aims to add 100 more stores and hike the price by 3 %

Plans to open 100 new stores of Dunkin donuts across the country this financial year

At present it runs 3 store

Things Jubilant must watch out for...

Till now no nation wide competitor, only city wise

Competition from New Entrants as market is untapped

Substitution effect (like restaurants, other food joints)

Suppliers growing bargaining power

Dominos on the Industry Life Cycle

Conclusion

Business Model Relatively inelasticity of Demand Advantage.

Future growth depends on how well retailers are able to innovate, provide value for money, and keep up and surpass competitors.

The fast-food industry is becoming more global and it seems that will continue

The growth of the fast-food industry is expected to generally stay the same over the next few year.

Bibliography

www.moneycontrol.comwww.jubilantfoodworks.comrkhttp://en.wikipedia.org/wiki/Jubilant_FoodWor

ks

http://articles.economictimes.indiatimes.com/2012-09-19/news/33952579_1_jubilant-foodworks-jubilant-foodworks-jubilant-plans

http://marketentryindia.comhttp://economictimes.indiatimes.comAnnual report of Jubilant FoodWorks Limited

2012-2013

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