Emerging Everyday - Rollatainers Limited Corporate... · Rising Number of Malls & Multiplexes Logistics Providers and Contract Cultivation 18-20 years 18% 21-30 years 40% 31-40 years

Rollatainers Limited(BSE: 502448)

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 10

7. Appendix 22

3

Overview

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.

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

“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, 2014

Group Overview

F&B Brands

Recent Developments

4

Organisational Structure

Organisational Structure

Rollatainers Limited

Carnation Hospitality Pvt Ltd

Barista Coffee Company Ltd

Mapple Hospitality Pvt Ltd

Dolomite Restaurants Pvt Ltd

Sierra Nevada Restaurants Pvt Ltd

Welgrow Hotel Concepts Pvt Ltd

IMM Associates(JV Partner)

RT Packaging Ltd

49.99%

100%

5

Management Biographies


• 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

Sanjay ChhabraManaging 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

Saurabh KhanijoDirector - Carnation

• 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

Jasper ReidCo-Chief Executive Officer – Wendy's

& Jamie'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

Arvind DixitChief Operating Officer – Wendy's

• 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

Sanjeev KatyalChief Executive Officer - Barista

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• 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

Mandeep SethiVice President (Operations) – Jamie's

Pizzeria

• 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

Kunal DewanVice President (Operations) – Jamie's

Italian

• 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

Sanjay WadhawanJoint Managing Director - Mapple


• 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

Rajat AgrawalAVP – Corporate Finance

7

Industry Snapshot

21% C

AG

R

2013 Market Size 2018 Market Size

CategoryMkt Size (Rs. Cr)

% of Total

2013-18 CAGR Growth Opportunity

Quick Service 5,500 46%

• Expansion into Tier I and Tier II cities• Increasing preference for convenience food• Innovation in menu and offerings to suit local tastes and preferences

Cafes 1,520 13%

• India per capita coffee consumption 80 gm vs 8 kg in developed countries• Growing preference for coffee in India• Consistent growth of consuming class

Casual Dining 3,950 33%

• 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

25%

20%

18%

Source: Teknopak Advisors

Industry sizeRs. 12,010 Cr Sales

Industry sizeRs. 32,000 Cr Sales

Industry Snapshot

Quick

Service

54%

Casual

Dining

29%

Cafes

12%

Fine

Dining

3%

Pubs, Bars,

Clubs and

Lounges

2%

Quick

Service

46%

Casual

Dining

33%

Cafes

13%

Fine

Dining

4%

Pubs, Bars,

Clubs and

Lounges

4%

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Favorable Industry Backdrop

Eating out ratio (times / month)

Fast food consumption, by age group

Industry Snapshot

Source: National Restaurant Association of India

Source: Athena Infonomics

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

18-20 years18%

21-30 years40%

31-40 years31%

Above 40

years11%

2

15

20

25

40

45

- 20 40 60

India

Indonesia

UK

US

Singapore

Thailand

99

Strategic Direction

Capitalise on the growth potential in the Indian food industry

Create a basket of highly valued food brands with quality food

Unique positioning for each brand to build a scalable business model

Build synergies across brands by sharing best practices

Being a cut above at competitive price points

Be an employer of choice

1

2

3

4

Strategic Direction

5

1010 Carnation Brands

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

1111

• 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 vis-à-vis competition

• Separate franchise & staff training department established to improve store management & service

Existing stores

• Revenue sustenance and enhancement at existing stores though extensive rebranding effort to attract customers

• Cost optimization to reduce expenses and enhance profitability

New Stores

• New store formats catering to target customers

• Own store expansion in high footfall areas

• Revamped location selection strategy

Franchise operations

• Undertake domestic & international expansion through franchise route for incremental growth

• Develop robust franchise strategy

• Develop enhanced selection criteria for franchise operators

Brand monetisation

• Enhanced brand experience through extensive brand repositioning effort

• Brand monetisation through retailing of branded packaged products (Ready-To-Eat & Ready-To-Drink products)

Turnaround Strategy

Intervention Currently Being Undertaken

Carnation Brands


The New Look


The New Menu

Source: Prices stated above are indicative


The New Positioning


City

Average Daily Sales

Same Store Change (%)

Sep ‘14 vs Jul’15

Chennai 11%

Delhi & NCR 11%

Hyderabad 9%

Mumbai 9%

Bangalore 2%

Overall 5%

City

Average Daily Tickets

Same Store Change (%)

Sep ‘14 vs Jul’15

Chennai 3%

Delhi & NCR 8%

Hyderabad 9%

Mumbai 8%

Bangalore 3%

Overall 4%

Post Acquisition Growth


Overview

• World’s 3rd largest quick-service hamburger chain

• Presence in 30 countries

• More than 6,500 restaurants globally

• Targeting ~50 stores by FY2020 in India


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


Wendy’s in India


Launch Day


Overview

• Italian dining chain by celebrity chef Jamie Oliver

• Jamie Oliver is known for his food shows, cookbooks andthe recent global campaign for better food education

• 35 Jamie's Italian outlets across the UK, as well as 9international restaurants

• Targeting ~190 stores in India across formats byFY2020


Position as a Fast-casual authentic Italian food chain

Capitalise on the high profile Jamie Oliver brand

Develop a scalable pizzeria format

Leverage growing preference for Italian cuisine


Overview

• All day dining multi-cuisine restaurant that operates acrossthe Mapple Hotels

• Operates speciality restaurants to cater to regionalpreferences and food services including banqueting services

• Presence in New Delhi, Bangalore, Jodhpur, Corbettand Bhimtal


Continued focus on providing food services

Backward integration for other Carnation brands

Banqueting, Railways / Delhi Metro and other food catering


Overview

• Kylin operates world class casual dining chain for over10 yrs

• Brands include Kylin Premier (the Teppanyaki Grill /Oriental), Kylin Experience and Kylin Express (QSR anddelivery based)

• Has 9 stores in north India

• Targeting ~150 stores by FY2020


Expand the already successful Kylin brand and platform

Capture market share at affordable price points

Scalable QSR and delivery based format

New Asian flavors for the Indian palate

Making pan-Asian cuisine a healthy platform

22

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Appendix I – Industryo 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 18-40

o Increasing income and consumption levels

o Total household consumption is expected to rise from Rs. 82K in 2005 to Rs. 248K by 2025making 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 & higher standard of living to lead to an increasingproportion of Indians eating out

o Rising number of working women

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 anincrease 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

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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 andeconomic performance.

While these forward looking statements indicate our assessment and future expectationsconcerning the development of our business, a number of risks, uncertainties and otherunknown factors could cause actual developments and results to differ materially from ourexpectations.

These factors include, but are not limited to, general market, macro-economic, governmentaland regulatory trends, movements in currency exchange and interest rates, competitivepressures, technological developments, changes in the financial conditions of third partiesdealing with us, legislative developments, and other key factors that could affect ourbusiness and financial performance.

Rollatainers undertakes no obligation to publicly revise any forward looking statements toreflect future / likely events or circumstances.

Disclaimer

Contact Details:

Carnation Hospitality Private Limited

236 B & C, DLF South Court, Saket District CentreNew Delhi – 110017

www.rollatainers.com

Rajat Agrawal

Carnation Hospitality Pvt. Ltd.

+91 11 4936 0900

[email protected]

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mailto:[email protected]

Emerging Everyday - Rollatainers Limited Corporate... · Rising Number of Malls & Multiplexes Logistics Providers and Contract Cultivation 18-20 years 18% 21-30 years 40% 31-40 years

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