jubilant foodworks company analysis
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jubilant foodworks economics projectTRANSCRIPT
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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