McDonald's to invest Rs 400 cr in India

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Kolkata, June 11: : With an aim to clock 30-35 per growth per annum, the US fast food chain McDonald's plans to open around 60 more restaurants across the country annually and pump in Rs 400 crore in the next three years.

"India has a huge market potential for McDonald's," Connaught Plaza Restaurants Managing Director Vikram Bakshi said while inaugurating an outlet in Kolkata.

To tap this potential the fast food major plans to open 40-60 outlets each year nationally and also intends to invest Rs 400 crore over the next three years.

McDonald's has 160 restaurants in India.

McDonald's restaurants in India were being operated by two 50:50 joint ventures, one between McDonald's and Connaught Plaza and the other between McDonald's and Hard Castle Restaurants Private.

Out of Rs 400 crore earmarked for national expansion, Rs 100 crore would be spent for the eastern region.

This was the second outlet in the metropolis. The first one which opened at Park Street was being renovated after the blast which took place there 10 months ago.

"The Park Street outlet will be opened before the Pujas," Bakshi said.

Asked whether the company would go for private placement for raising funds, Bakshi said the entire financing would be made from internal accruals and debt.

To a query, he said rise in real estate prices was a cause for concern, but added this was not affecting McDonald's much since the company was able to get better terms and conditions by virtue of the brand name.

However, he added that efforts were on to get 'right size' outlets in terms of space available and seating capacity.