Financial Daily from THE HINDU group of publications
Thursday, Apr 20, 2006
Financial Daily from THE HINDU group of publications Thursday, Apr 20, 2006 |
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Marketing
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Retailing McDonald's India eyes tier-II presence Our Bureau
New Delhi , April 19 Fast-food major McDonald's has charted out aggressive expansion plans in the country in the coming years. The company said it would invest roughly Rs 400 crore in expanding into the eastern parts of the country alongside setting up 25 outlets in places such as Benaras, Amritsar, Patiala, and Kolkata among others. "Now that we have a good spread of McDonald's across the country, we are expecting tier-II cities to contribute to our growth in a significant way. Hence, we are hoping to be present in most smaller cities in the next two to three years," said Mr Vikram Bakshi, Joint Venture Partner and Managing Director of McDonald's India (North). According to Mr Bakshi, the company has recorded a 40 per cent compound annual growth rate (CAGR). Speaking about the company's "second phase of growth", Mr Bakshi said: "We are venturing into new convenience formats for our consumers such as cold kiosks, home delivery model McExpress, highway restaurants and drive-thru restaurants." Backend growth: The company's backend operations, including raw materials sourcing and processing plants are also on expansion mode. "We would be setting up four additional plants in the next three years to support our systems," Mr Bakshi said. Alongside expansion of systems and outlets, the fast-food major also plans to increase its headcount. "Each restaurant requires 50 people. We look to add 800 members to our team," he added. McDonald's India, having completed 10 years, unveiled a new logo to mark the occasion. Mr Bakshi is extremely bullish on the company's prospects in India. He said that he hoped to double the turnover every three years. Franchisee route: The company is also studying the franchisee model to increase its presence. "So far, all our outlets are company owned. However, in the next two to three years we might be present in the franchisee route as well," Mr Bakshi said. Having attained a market share of 16 per cent in the Capital, Mr Bakshi said that the company was in talks with various campuses and hospitals to set up shops. "We are seriously looking at institutional sales for further growth and more so now with the Government allowing privatisation of airports," he added.
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