The company will spend as much as 130 million rupees ($2.45 million) to open up to 10 stores in Delhi and its suburbs this financial year, Chief Executive Officer Ajay Kaul said at a conference in New Delhi. Jubilant Foodworks opened India’s second Dunkin’ Donuts store today.
Dunkin’ Donuts will compete in India with companies such as Cafe Coffee Day, run by Amalgamated Bean Coffee Trading Co., Lavazza SpA’s Barista Coffee Co., and Starbucks Corp. (SBUX), which plans to open its first India store in August through its partnership with Tata Global Beverages Ltd. (TGBL)
Jubilant Foodworks signed a franchise agreement with Canton, Massachusetts-based Dunkin’ Brands Group Inc. (DNKN) in February 2011. The Indian company invested about 100 million rupees in setting up a manufacturing facility, a research center and an office for the brand last year, Kaul said.
The company is in discussions with other international food retailers for their entry into the Indian market, Kaul said, without giving more details.
Shares of Jubilant Foodworks fell 0.6 percent to 1,102.50 rupees as of 2:28 p.m. in Mumbai.
Demand for brands such as Dunkin’ Donuts’ is being aided by a rise in the number of Indians who travel, Dev Amritesh, president and chief operating officer for Dunkin’ Donuts India said.
“People are traveling a lot, getting exposed to what is happening in countries around the world,” Amritesh said. “Obviously, consumers want the experience that they see in other places.”
The fast-food market in India is expected to grow to 146 billion rupees in 2014 from 47 billion rupees in 2010 helped by a growing, young population, higher disposable incomes, and more women starting to work, an August report by Noida, India-based researcher RNCOS says.
Jubilant Foodworks’s profit is estimated to rise 54 percent to 297 million rupees in the three months ended March 31, from the same period a year earlier, according to the median of 17 analysts’ estimates compiled by Bloomberg. The company will report its financial results on May 10.
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