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RJ Corp, the Indian billionaire Ravi Jaipuria's company, owns Devyani International, which was founded in 1991. Jaipuria's net worth is $3.5 billion, and he named the company after his daughter.
KFC and Pizza Hut franchises account for the majority of Devyani International's revenue. Despite the once-in-a-century epidemic, these two franchises have helped the company grow.
Devyani International - Company Highlights
| Startup Name | Devyani International Limited |
|---|---|
| Parent Company | RJ Corp |
| Headquarters | Gurgaon, Haryana. |
| Industry | Food and Beverages, Restaurants and Cafes |
| Founders | Ravi Kant Jaipuria |
| Founded | 1991 |
| Website | www.dil-rjcorp.com |
Devyani International - Latest News
About Devyani International and How it Works
Devyani International - Name, Logo and Tagline
Devyani International - Mission and Vision
Devyani International - Founders and History
Devyani International - Revenue and Growth
Devyani International - Awards and Recognitions
Devyani International - Competitors
Devyani International - Challenges Faced
Devyani International - Future Plans
Devyani International - FAQs
Devyani International - Latest News
As of May 2021, Devyani International, the world's largest franchisee operator of global restaurant franchises Pizza Hut, KFC, and Costa Coffee, has filed for an initial public offering (IPO) to generate close to INR 1,400 crore, joining the QSR IPO craze.
The offer, according to DRHP, includes a fresh issuance of INR 400 crore and an Offer of Sale of up to 125.33 million equity shares by Investor Selling Shareholder Dunearn Investments (Mauritus) Pte. Ltd, a wholly owned subsidiary of Temasek Holdings, and Promoter Selling Shareholders RJ Corp Ltd.
About Devyani International and How it Works
Devyani International Limited, an associate company of RJ Corp, PepsiCo's largest bottler, with interests in beverages, food, dairy, healthcare, real estate, and education, is the fastest rising, most financially viable player in the Indian retail F&B sector, with 500+ restaurants across the Indian subcontinent, Nepal, and Nigeria.
As of March 31, 2021, Devyani International is India's largest Yum Brands franchisee and one of the country's largest network of quick-service restaurant operators, with 655 locations in 155 cities.
DIL has created its own brand Vaango – a world-class south Indian QSR chain with intentions to expand across India, based on its illustrious track record and competence in the QSR category. DIL also operates Food Courts and Lounges at the airports of Delhi, Mumbai, Hyderabad, Raipur, Srinagar, Lucknow, Trichy, and hospitals and shopping malls. The Grid Bar, Katism, Foodies Bar, Delhidare Devils, Tea Cups, Masala Twist, and other ‘Own Brand' restaurants can be found in the Food Courts.
Devyani International - Name, Logo and Tagline
Ravi Jaipuria, the founder of Devyani International, named the company after his daughter, Devyani.
Devyani International - Mission and Vision
Devyani International Limited's mission and vision statement says, “To be a people centric, customer focused and process driven operations, striving for excellence day in day out with a beat year ago and turnaround mentality”.
Devyani International - Founders and History
DIL is a non-govt. corporation that was founded on December 13, 1991 by Ravi Kant Jaipuria.
In 1991, Ravi Jaipuria founded Devyani International Limited, which is an Indian food and beverage company, based in Gurugram, Haryana. There are 1420 people working at Devyani Internationals.
Devyani Internationals is one of Pizza Hut's largest franchisees in India. In June 1996, Pizza Hut opened its first location in India, in Bengaluru. This was the first multinational restaurant chain to join this sector, and it is recognized for helping to establish the Indian pizza market.
With the opening of its first Pizza Hut store in Jaipur in 1997, Devyani International began its partnership with Yum. It had 297 Pizza Hut locations, 264 KFC locations, and 44 Costa Coffee locations in India as of March 31, 2021. Between March 2019 and March 2021, the number of core brand stores increased by 13.58 percent, from 469 to 605. According to DRHP, the company employs 9,356 people.
Through an association with Whitbread Group UK, Devyani Internationals brought a fresh gust of coffee aroma into the country in 2005. Costa Coffee has become a darling among India's coffee connoisseurs. Despite being a relative newcomer to the business, Costa Coffee has established a strong presence in the NCR, Bengaluru, Jaipur, and other cities, with over 80 locations.
It is designated as a 'company limited by shares ' and is a public unlisted corporation. The authorized capital of the company is INR 12500.0 lakhs, with an 84.933334 percent paid-up capital of INR 10616.67 lakhs. The DIL's most recent annual general meeting was held on August 10, 2017. According to the Ministry of Corporate Affairs, the company's financials were last updated on March 31, 2017.
Devyani International Limited has been in the Manufacturing (Food products) company over the past 30 years, and the company is still operational. Rashmi Dhariwal, Vishesh Shrivastav, Varun Jaipuria, Som Nath Chopra, Virag Joshi, Ravi Gupta, Raj Pal Gandhi, Ravi Kant Jaipuria, and Devyani Jaipuria are the current board members and directors.
Devyani International - Revenue and Growth
DIL presently owns and runs 297 Pizza Hut outlets. As of March 31, 2021, the company was also a Costa Coffee franchisee, with 44 Costa Coffee outlets and 264 KFC stores. DIL owns Vaango, Food Street, Masala Twist, Ile Bar, Amreli, and Ckrussh Juice Bar, and has 692 outlets in 26 Indian states, as well as Nepal and Nigeria.
DIL's core brands (India and global) amounted to 94.19 percent of its operations revenues in FY21, while delivery sales amounted for 70.20 percent of revenues, an increase from 51.15% in FY20. Despite the epidemic, the company has worked to expand its shop network, with 109 new locations opening in the previous 6 months across its core brand business.
The core brand stores grew 13.58 percent from 469 to 605 shops between March 2019 and March 2021, and the firm credits its success and continued growth efforts to its 9,356 workers. Devyani Internationals is the largest QSR firm in India to be featured on Swiggy and was one of the top QSR companies in India to be registered on Zomato in 2019 and 2020.
Himangi Khare
Devyani International - Awards and Recognitions
| Year | Awards |
|---|---|
| 2020 | "India’s 100 Best Workplaces for Women 2020" by the Great Place to Work Institute, India |
| 2019 | Pizza Hut and KFC were recognised among the “Most Trusted Brands” in Food Services category in Brand Equity Survey conducted by The Economic Times. |
| 2018 | “Great Workplace” by the Great Place to Work Institute, India, Costa Coffee (T3 International Departure Pier) was awarded the Certificate of Excellence for “Outlet of the Year- F&B (International)” by Delhi International Airport Limited at the IGIA Awards 2018, Grid Bar (T3 Domestic Departure Food Court) was awarded the Certificate of Excellence for “Outlet of the Year- F&B (Domestic)” by Delhi International Airport Limited at the IGIA Awards 2018. |
Devyani International - Competitors
Top Competitors of Devyani International are as follows :
- Digg Inc
- 9GAG Inc
- 4chan community support LLC
- Newser LLC
- NewsMax.com
- Salon.com
- Laugh Roulette
Devyani International - Challenges Faced
The business's DRHP, which was filed with SEBI, clearly reveals that COVID-19-related concerns are the most pressing for the sector and the company. Due to a considerable drop in footfalls as a result of COVID-19 regulations, Devyani International permanently closed 61 locations under its major brands in FY21.
The Devyani Iternational revenue has also suffered as a result of falling footfalls, with in-store dining revenue falling to 29.8% from 48.85% in FY21. The impact of COVID-19 is expected by the company to persist, as footfall and sales are still being impacted by the second wave of COVID-19. As the company explains in its DRHP, COVID limits have had a direct impact on the business's capacity to manage product inventory, resulting in considerable inventory write-offs, with the majority of the inventory consisting of perishable components for direct purchase.
The firm also notes that if the second wave worsens or is not controlled in a timely manner, it may be unable to meet the increased development obligations, further adjust these arrangements, or operate our stores economically, if at all. This might have a variety of repercussions, including the termination of Yum's different agreements, which would have a material negative impact on the business, results of operations, and financial condition if they are unable to renew them.
PV Vyshnavi
Devyani International - Future Plans
Devyani International has filed a draught red herring prospectus (DRHP) with market regulator SEBI to undertake an initial public offering (IPO) of INR 1,400 crore (IPO). KFC, Pizza Hut, and Costa Coffee are the company's major franchisees. Investor Selling Shareholder, Dunearn Investments (Mauritius) Pte. Ltd, a wholly owned subsidiary of Temasek Holdings, and Promoter Selling Shareholders and RJ Corp Ltd would issue new equity shares worth INR 400 crore, as well as an offer-of-sale (OFS) of up to 12.5 crore equity shares.
The losses indicated from FY19 to FY21 were mostly attributable to increased operational expenditures incurred as a result of the company's store network development. DIL, on the other hand, has not been able to recoup these costs. In FY20, their total revenue from operations climbed by 15.7 percent year over year.
In FY19 and FY20, Devyani International had negative cash flows (cash outflows) of INR 17.29 crore and Rs 13.47 crore, respectively. In FY21, the company received INR 26.73 crore in cash. The company states in its DRHP that it may experience negative cash flows in the future, which could have a detrimental impact on its operations and growth objectives.
Devyani International intends to maintain its growth potential in the future by building new stores every year. In the future quarters, this will result in a further increase in operating costs and other expenditure. As a result, DIL anticipates losses until the new stores reach maturity. The net profits from the IPO will be used to pay down a major percentage of the company's debt. This would allow them to use their internal accruals (or operating profit) to fund investments in business sustainability and diversification.
Devyani International - FAQs
When was Devyani International Limited founded?
DIL is a non-govt. corporation that was founded on December 13, 1991 by Ravi Kant Jaipuria.
Where is Devyani International Limited headquarters?
Devyani International Limited is headquartered in Gurugram, Haryana, India.
Is Devyani International Limited a private company?
Yes, DIL is a private company.
What sector does Devyani International Limited operate in?
DIL is under food & beverages sector.
Author: Sarika Anand
Source : https://startuptalky.com/devyani-international-success-story/
Date : 2021-06-14T15:32:25.000Z