Jubilant FoodWorks Limited, the market leader in the organized pizza home delivery segment in India and holder of the Master Franchisee Rights for Domino’s Pizza, is looking at a countrywide expansion by the end of financial year 2011. During the second quarter of financial year 2011 (Q2FY11), 18 Domino’s outlets were launched in 5 new cities of India, taking the total number of stores to 339 across 79 cities.
Speaking at an analyst call on Thursday, Ajay Kaul, CEO, Jubilant FoodWorks stated, “We are looking at a nationwide expansion, and plan to launch 70 more stores by the end of FY11. Besides that, we plan to add to our product portfolio and come up with something that suits the pan-Indian taste.”
The company posted a robust growth rate of 67% at Rs 163.3 crore in Q2FY11, as opposed to Rs 97.75 crore in the same quarter last year. During this period, the company posted a net profit of 137% at Rs 18.43 crore vis-a-vis Rs 7.77 crore in the second quarter of last year. The like-to-like growth stood at a healthy rate of 43.8%
Jubilant FoodWorks is greatly encouraged by the high growth rate and positive consumer response in the just ended quarter. Hari S Bhartia, co-chairman of Jubilant Bhartia Group, said “The response to our new products launched during this quarter has been phenomenal. The Mexican Wrap and Pasta Italiano have become huge hits in the market. We plan to keep making innovations in our menu-mix and hope to win a large stomach-share in our consumers.”
With the increased popularity of the Domino’s pizza chain, customer demands are changing too. Mr Ravi Gupta, chief financial officer, Jubilant FoodWorks Limited, feels “The pizza market is upbeat and is expected to grow more. When we launched the Choco Lave cake in the December quarter of 2010, there was a space for a dessert in our menu. Many such product additions based on customer needs are likely to happen. But we will continue to focus on pizza innovations more than size-orders.”