[credit provider=”Lucas Pettinati via flickr ” url=”http://www.flickr.com/photos/lpettinati/2855039583/”]
Domino’s has been making major headway in India, thanks to Ajay Kaul, who’s the CEO of Jubilant FoodWorks. He took over the business, which franchises Domino’s in the region, in 2005, and completely reversed its huge losses.Kaul spoke with the Economic Times about how he inherited an “intensely tightly-run company” that didn’t even have a mid-term vision and turned it around:
“The business was highly cost-focused, key divisions like quality and HR were operating as one or two-men teams, and focus on supply chain and operations was lacking.” … What added to the problem was stores were being opened at a frenzied pace, resulting in accumulated losses and some 40 stores downing shutters. … But his biggest challenge, Kaul says, was changing mindsets of his employees.
In 2007, he offered employees stock options; and after the company IPO’d in 2010, he invested in the Dunkin’ doughnut franchise, and plans to take on more brands. “We are formally mentoring 60-70 managers to train them as future CEOs,” he told the ET.
Today Domino’s has a 45% market share in the country’s $13 billion fast-food market that’s growing by 25-30% annually. Although same-store sales have slowed in the past year, the chain is still growing like crazy. It went from around 80 stores when Kaul started to more than 400, and India is now the fastest-growing market for Domino’s behind the U.S.
Although the consumer market in India is at risk for slowing, Jubilant is going to ramp up marketing to counter potential losses. This week the company reported a 136% increase in consolidated net profit for the last quarter, and analysts predicted that “Jubilant is in a long-term bull market.”