With plans to add 250 new stores, including those of Pizza Hut, Costa Coffee and KFC, and expand PepsiCo?s bottling operations with two new plants, bottling and food major RJ Corp is all set to pump in R600-700 crore in 2012.
The funds will be raised through internal accruals and will go towards expanding the food business of RJ Corp, the company?s chairman Ravi Jaipuria told FE.
?Of the new outlets, there will be around 100 new Pizza Hut stores next year and a similar number of Costa Coffee outlets,? Ravi Jaipuria, chairman of RJ Corp said. ?We invested around R600-700 crore in the business this year. We should invest the same amount next year too as we grow and expand in India and Africa,? Jaipuria told FE in an interview.
At present, RJ Corp?s various divisions own around 260 stores including those of Pizza Hut, Costa Coffee, KFC and Vaango.
According to Jaipuria, by the end of the next year, there will be around 210 Costa Coffee outlets, around 225 Pizza Hut restaurants and over 40 KFC restaurants in India.
Through the expansion drive, RJ Corp is looking to make its food and beverage division Devyani International public by 2013. Devyani International runs Pizza Hut, KFC, and Costa Coffee brands.
?Within 2013, Devyani International should become a $1 billion company and then we will list it. We will dilute around 10% stake in it to fund future expansions,? Jaipuria told FE.
While Devyani International holds the franchisee rights for Yum Restaurants-owned Pizza Hut and KFC, exclusive franchisee rights for UK-based coffee chain Costa Coffee and has recently set up its own chain of South Indian restaurants, Vaango, Varun Beverages International houses the PepsiCo bottling operations of RJ Corp across India and abroad.
In May and later in July this year, RJ Corp saw investments of over R425 crore from two of the well known investors ? ICICI Ventures and the private equity arm of Standard Chartered Bank. While ICICI Ventures picked up 10% in Devyani International, Standard Chartered Bank?s private equity arm is said to have invested around R250 crore for 5% in RJ Corp?s Varun Beverages International, PepsiCo?s biggest bottler in South Asia valuing the company at more than $1 billion.