Rollatainers Limited (BSE: ) Emerging Everyday

Transcription

1 Rollatainers Limited (BSE: ) Emerging Everyday Food Business August 2015

2 Table of Contents 1. Overview 3 2. Organisational Structure 4 3. Management Biographies 5 4. Industry Snapshot 7 5. Strategic Direction 9 6. Carnation Brands Appendix 22 2

3 Overview Group Overview Rollatainers Limited has a longstanding presence in the consumer packaging industry, particularly as a supplier to the FMCG sector. Carnation Hospitality Private Limited ( Carnation or Food business ) is a wholly owned subsidiary of Rollatainers and is engaged in the food business. F&B Brands Carnation owns F&B businesses such as Barista, the coffee chain Mapple Hospitality, supplies food to Mapple hotels and has substantial banqueting and B2B operations Kylin chain of oriental cuisine dining Also introduced global restaurant chains such as Wendy s, the third largest burger chain in the world Jamie s Italian, by celebrity chef Jamie Oliver Recent Developments Rollatainers and International Market Management Ltd s ( IMM ) 50:50 joint venture company, Sierra Nevada Pvt. Ltd., entered into a long term licensing agreement for setting up the Wendy s Restaurant franchise in India August 27, 2014 Carnation acquired Lavazza s wholly owned subsidiary Barista Coffee Company Ltd., which operates the second largest coffee chain in India with a presence in the UAE, Sri Lanka, Nepal, Bangladesh and Myanmar August 11, 2014 Rollatainers and IMM s 50:50 joint venture company, Dolomite Restaurants Pvt. Ltd., entered into a long term development agreement with Jamie s Italian International Ltd to operate Jamie s restaurants across India July 16, 2014 Carnation also acquired the Kylin restaurant chain, and the Mapple foods business July 16, Overview

4 Organisational Structure Rollatainers Limited 49.99% 100% IMM Associates (JV Partner) Carnation Hospitality Pvt Ltd RT Packaging Ltd Sierra Nevada Restaurants Pvt Ltd Dolomite Restaurants Pvt Ltd Barista Coffee Company Ltd Mapple Hospitality Pvt Ltd Welgrow Hotel Concepts Pvt Ltd 4 Organisational Structure

5 Management Biographies Sanjay Chhabra Managing Director Carnation Sanjay is an entrepreneur and co-founder of Mapple Hospitality He also has extensive experience in the fields of engineering, marketing & project implementation Before venturing into entrepreneurship, he worked with engineering major Larsen & Toubro for over 7 years Sanjay is an engineer from IIT Delhi and holds an MBA from Jamnalal Bajaj Institute, Mumbai Saurabh Khanijo Director - Carnation Saurabh has vast experience of over two decades in the F&B & travel sector in India Has successfully managed the establishment & expansion of the "Kylin" brand in North India Saurabh holds a Masters degree in Business Administration Jasper Reid Co-Chief Executive Officer Wendy's & Jamie's Jasper is the co-founder of IMM, where he led the establishment of Pizza Express in India and its operating business (Asia Brand Partners & Greater Pacific Restaurant Corp) Has over 20 years of experience across developed & emerging markets He previously worked with Macquarie Group as Managing Director Jasper holds a Masters degree from Oxford University Sanjeev Katyal Chief Executive Officer - Barista Sanjeev has over 23 years of experience in advertising, sales, marketing & general management He has been associated with companies such as Topps Company Inc., McDonald s India, McCann Erickson and FCB Ulka He holds a Commerce Degree from Delhi University and Executive Management Degree from National Business School of Singapore and Hamburger University, USA Arvind Dixit Chief Operating Officer Wendy's Arvind has over 20 years of experience in Operations in the F&B industry in India He has worked with Connaught Plaza, McDonald s North India franchisee, as Director of Operations Arvind is a graduate from IHM, Pusa 5 Management Biographies

6 Management Biographies Mandeep Sethi Vice President (Operations) Jamie's Pizzeria Mandeep has extensive experience in F&B and retail sector in India He has worked with McDonald s India for more than 11 years Has also worked with Future Retail and Mondelez India Mandeep holds a degree in Hotel Management and Executive MBA from IIM, Kolkata Kunal Dewan Vice President (Operations) Jamie's Italian Kunal has over 15 years of experience in the F&B retail sector in India Has worked with leading brands such as Pizza Hut and KFC in India and Subway in the UK Kunal also worked with Amici as Head of Operations, where he scaled up the business from a single store to a chain of stores More recently, he was leading the development of Zizo, a new fast casual brand Sanjay Wadhawan Joint Managing Director - Mapple Sanjay has over 27 years of experience managing hotel & food services business He is the co-founder of the Mapple Hospitality chain of hotels He started his career with Usha Group, where he worked with their consumer packaging business, as well as their master franchise operations for Choice Hotels Sanjay is a commerce graduate from Hindu College, University of Delhi Rajat Agrawal AVP Corporate Finance Rajat has over 10 years of experience in financial consulting with majors like Ernst & Young, Deloitte and Grant Thornton He has been involved in transactions spanning across F&B Rajat is a Chartered Accountant by profession and holds a bachelors in commerce 6 Management Biographies

7 Industry Snapshot 2013 Market Size 2018 Market Size Cafes 13% Pubs, Bars, Fine Clubs and Dining Lounges 4% 4% Quick Service 46% 21% CAGR Cafes 12% Fine Dining 3% Pubs, Bars, Clubs and Lounges 2% Quick Service 54% Casual Dining 33% Industry size Rs. 12,010 Cr Sales Casual Dining 29% Industry size Rs. 32,000 Cr Sales Category Mkt Size (Rs. Cr) % of Total Quick Service 5,500 46% Cafes 1,520 13% Casual Dining 3,950 33% Source: Teknopak Advisors CAGR 25% 20% 18% Growth Opportunity Expansion into Tier I and Tier II cities Increasing preference for convenience food Innovation in menu and offerings to suit local tastes and preferences India per capita coffee consumption 80 gm vs 8 kg in developed countries Growing preference for coffee in India Consistent growth of consuming class Increase in number of nuclear families and working women Steady growth in incomes, changing lifestyle and eating patterns Increasing preference for new cuisines from around the world 7 Industry Snapshot

8 Favorable Industry Backdrop Favorable Demographics Rising Number of Working Women Lifestyle Changes Increasing Income and Consumption Levels Urbanization Hygiene-conscious Customer Increasing Preference for New Cuisines Rising Number of Malls & Multiplexes Logistics Providers and Contract Cultivation Eating out ratio (times / month) Thailand Singapore US UK Indonesia India Source: National Restaurant Association of India Fast food consumption, by age group years 31% Above 40 years 11% 2 Source: Athena Infonomics years 18% years 40% 8 Industry Snapshot

9 Strategic Direction Capitalise on the growth potential in the Indian food industry 1 Create a basket of highly valued food brands with quality food 2 Unique positioning for each brand to build a scalable business model 3 Build synergies across brands by sharing best practices 4 Being a cut above at competitive price points 5 Be an employer of choice 9 9 Strategic Direction

10 Overview Second largest coffee chain in India Presence in UAE, Sri Lanka, Nepal, Bangladesh, Myanmar Close to 180 stores including 21 outside India Focus on high streets, malls and corporate offices Targeting 750 stores by FY2020 Strategy and Outlook Simplify store formats and refresh the brand Improve customer experience Enhance products and service offerings New store strategy to focus on key tier one / two cities Economies from centralised operations Rewarding franchise model Carnation Brands

11 Turnaround Strategy Existing stores New Stores Franchise operations Brand monetisation Revenue sustenance and enhancement at existing stores though extensive rebranding effort to attract customers Cost optimization to reduce expenses and enhance profitability New store formats catering to target customers Own store expansion in high footfall areas Revamped location selection strategy Undertake domestic & international expansion through franchise route for incremental growth Develop robust franchise strategy Develop enhanced selection criteria for franchise operators Enhanced brand experience through extensive brand repositioning effort Brand monetisation through retailing of branded packaged products (Ready- To-Eat & Ready-To-Drink products) Intervention Currently Being Undertaken Closure of loss making stores which cant be turnaround Strict financial monitoring with regular store checks Optimization and rationalisation of costs to minimize of food wastage Launch of new marketing & branding initiatives to reposition Barista visà-vis competition Separate franchise & staff training department established to improve store management & service Carnation Brands

12 The New Look Carnation Brands

13 The New Menu Source: Prices stated above are indicative Carnation Brands

14 The New Positioning Carnation Brands

15 Post Acquisition Growth Average Daily Sales Average Daily Tickets City Same Store Change (%) City Same Store Change (%) Sep 14 vs Jul 15 Sep 14 vs Jul 15 Chennai 11% Chennai 3% Delhi & NCR 11% Delhi & NCR 8% Hyderabad 9% Hyderabad 9% Mumbai 9% Mumbai 8% Bangalore 2% Bangalore 3% Overall 5% Overall 4% Carnation Brands

16 Overview World s 3 rd largest quick-service hamburger chain Presence in 30 countries More than 6,500 restaurants globally Targeting ~50 stores by FY2020 in India Strategy and Outlook Offer consumers a QSR + experience Develop an innovative menu across all day parts Deliver quality, fresh and real food Great value at competitive price points Carnation Brands

17 Wendy s in India Carnation Brands

18 Launch Day Carnation Brands

19 Overview Italian dining chain by celebrity chef Jamie Oliver Jamie Oliver is known for his food shows, cookbooks and the recent global campaign for better food education 35 Jamie's Italian outlets across the UK, as well as 9 international restaurants Targeting ~190 stores in India across formats by FY2020 Strategy and Outlook Position as a Fast-casual authentic Italian food chain Capitalise on the high profile Jamie Oliver brand Leverage growing preference for Italian cuisine Develop a scalable pizzeria format Carnation Brands

20 Overview All day dining multi-cuisine restaurant that operates across the Mapple Hotels Operates speciality restaurants to cater to regional preferences and food services including banqueting services Presence in New Delhi, Bangalore, Jodhpur, Corbett and Bhimtal Strategy and Outlook Continued focus on providing food services Banqueting, Railways / Delhi Metro and other food catering Backward integration for other Carnation brands Carnation Brands

21 Overview Kylin operates world class casual dining chain for over 10 yrs Brands include Kylin Premier (the Teppanyaki Grill / Oriental), Kylin Experience and Kylin Express (QSR and delivery based) Has 9 stores in north India Targeting ~150 stores by FY2020 Strategy and Outlook Expand the already successful Kylin brand and platform New Asian flavors for the Indian palate Capture market share at affordable price points Making pan-asian cuisine a healthy platform Scalable QSR and delivery based format Carnation Brands

22 Appendix I Industry o Favorable demographics o 65% of the Indian population below the age of 35 o Majority of QSR/branded coffee sales are to people in age group of o Increasing income and consumption levels o Total household consumption is expected to rise from Rs. 82K in 2005 to Rs. 248K by 2025 making India the 5th largest consumer market o Higher disposable income will lead to increased spending on eating out o Lifestyle changes o Shift to nuclear families, dual income proportion of Indians eating out o Rising number of working women & higher standard of living to lead to an increasing o Women constitute about 51% of those who eat out at least once a month o Health and hygiene o Urban Indian consumers are becoming more conscious about health and fitness leading to an increase in the demand for food and beverages from branded stores o Urbanization o By 2030, about 40% of India s total population is expected to live in urban areas o Multiple cuisines o Indian consumers are increasingly preferring newer cuisines - Indo-Chinese, Thai, Italian, Japanese, Mexican cuisines, etc. o Improved retail format o Development of new and interactive retail formats such as mall and multiplexes are leading to greater penetration o Logistics providers and contract cultivation o Contract farming is helpful in sourcing agricultural produce at an agreed price o Emergence of third party logistic providers has also helped in rapid expansion of QSR sector in India Appendix

23 Disclaimer This presentation contains statements that contain forward looking statements including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Rollatainers Limited future business developments and economic performance. While these forward looking statements indicate our assessment and future expectations concerning the development of our business, a number of risks, uncertainties and other unknown factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to, general market, macro-economic, governmental and regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with us, legislative developments, and other key factors that could affect our business and financial performance. Rollatainers undertakes no obligation to publicly revise any forward looking statements to reflect future / likely events or circumstances. 23

24 Contact Details: Carnation Hospitality Private Limited 236 B & C, DLF South Court, Saket District Centre New Delhi Rajat Agrawal Carnation Hospitality Pvt. Ltd rajat.agrawal@barista.co.in 24