The Hindu Business Line : Domino's India to set foot in Bangladesh, Nepal

DOMINO'S India is set to spread its wings. The company said it was talking to several interested parties for appointing sub-franchisees in Nepal and Bangladesh.

Domino's Pizza India, a joint venture between the Bhartiyas of Jubilant Organosys and J. P. Morgan, is the master franchisee for India, Sri Lanka, Bangladesh and Nepal. But even after eight years, the joint venture has not begun operations in either Bangladesh or Nepal and has only two outlets in Sri Lanka. "Domino's Pizza India is the master franchisee for India and the neighbouring countries of Sri Lanka, Bangladesh and Nepal. We are talking to several parties for appointing a sub-franchisee in these two countries. Till date, all Domino's outlets in India are fully owned by the joint venture," the Managing Director, Mr Arvind Nair told Business Line.

Mr Nair said the pizza chain would expand into new geographies while keeping in mind the buyer profile and income levels of that region and "mindless" expansion would not be pursued.

On expansion plans in India, Mr Nair said there are already 90 stores across 25 towns and another 7-10 will be added per year. With an average investment of Rs 70 lakh a store, the chain will invest up to Rs 7 crore annually on expansion.

He said Domino's Pizza India has broken even for the first time last fiscal after it set shop in the country in 1996, but declined to provide any other financial data. Taking the example of Bangladesh and Nepal, Mr Nair said Domino's is planning to take the franchisee route to growth. "Over the next five years, fully-owned stores versus franchisees will be in the ratio of 2:1," Mr Nair said.

Asked whether free delivery, if the order is not delivered within 30 minutes, had worked well, Mr Nair said this was not a one-time promotion "but an investment in the brand. It is in fact a brand promise. Over the last three months since we launched this initiative, our sales have registered double digit growth rates."

More Stories on : Channels and Franchises | Food & Dairy Products

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
P&G cuts prices of Rejoice shampoo

Sun TV, Surya TV to be part of DD's DTH bouquet

Is consumer goods sector in churn?

Vertical growth

Philips Onam fare

Domino's India to set foot in Bangladesh, Nepal

Rediff to offer strategic market planning services