Rollatainers Limited (BSE: 502448) Emerging Everyday Food Business - - PowerPoint PPT Presentation

Rollatainers Limited

(BSE: 502448)

Emerging Everyday

Food Business

August 2015

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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

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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

• wned

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

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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%

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Management Biographies

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 Chhabra

Managing 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 Khanijo

Director - 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 Reid

Co-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 Dixit

Chief 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 Katyal

Chief Executive Officer - Barista

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Management Biographies

• 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 Sethi

Vice 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 Dewan

Vice 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 Wadhawan

Joint Managing Director - Mapple

Management Biographies

• 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 Agrawal

AVP – Corporate Finance

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Industry Snapshot

21% CAGR

2013 Market Size 2018 Market Size

Category Mkt 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 size

• Rs. 12,010 Cr Sales

Industry size

• Rs. 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 years 18% 21-30 years 40% 31-40 years 31% Above 40 years 11%

2 15 20 25 40 45

• 20

40 60 India Indonesia UK US Singapore Thailand

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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

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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

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• 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

• perators

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

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Carnation Brands

The New Look

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Carnation Brands

The New Menu

Source: Prices stated above are indicative

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Carnation Brands

The New Positioning

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Carnation Brands

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

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Carnation Brands

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

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

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Carnation Brands

Wendy’s in India

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Carnation Brands

Launch Day

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Carnation Brands

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 Develop a scalable pizzeria format Leverage growing preference for Italian cuisine

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Carnation Brands

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 Backward integration for other Carnation brands Banqueting, Railways / Delhi Metro and other food catering

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Carnation Brands

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 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

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Appendix I – Industry

• Favorable demographics
• 65% of the Indian population below the age of 35
• Majority of QSR/branded coffee sales are to people in age group of 18-40
• Increasing income and consumption levels
• Total household consumption is expected to rise from Rs. 82K in 2005 to Rs. 248K by 2025

making India the 5th largest consumer market

• Higher disposable income will lead to increased spending on eating out
• Lifestyle changes
• Shift to nuclear families, dual income

& higher standard of living to lead to an increasing proportion of Indians eating out

• Rising number of working women
• Women constitute about 51% of those who eat out at least once a month
• Health and hygiene
• 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

• Urbanization
• By 2030, about 40% of India’s total population is expected to live in urban areas
• Multiple cuisines
• Indian consumers are increasingly preferring newer cuisines - Indo-Chinese, Thai, Italian, Japanese, Mexican cuisines, etc.
• Improved retail format
• Development of new and interactive retail formats such as mall and multiplexes are leading to greater penetration
• Logistics providers and contract cultivation
• Contract farming is helpful in sourcing agricultural produce at an agreed price
• 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 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.

Disclaimer

Contact Details:

Carnation Hospitality Private Limited

236 B & C, DLF South Court, Saket District Centre New Delhi – 110017 www.rollatainers.com

Rajat Agrawal Carnation Hospitality Pvt. Ltd. +91 11 4936 0900 rajat.agrawal@barista.co.in

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