Date:11/05/2006 URL: http://www.thehindubusinessline.com/2006/05/11/stories/2006051102150500.htm

Back Pulse Foods on expansion drive

Dharini Nagarajan

To open more outlets on food cart, kiosk formats

New Delhi , May 10

Quick service restaurant company Pulse Foods India Private Ltd has charted out a massive expansion strategy, which includes experimenting with newer retail formats.

According to Mr Neeraj Jain, CEO of Pulse Foods, "Last month we opened our outlets in the kiosks and food cart formats and now we plan to expand upon this concept."

He added that modular formats (such as kiosks and carts) are a more cost-effective mode for expansion and that the company is planning to open around 70 points of sale this fiscal.

The company would also expand in smaller towns and markets, which Mr Jain said has "a huge potential''. It plans to open an outlet each in Surat and Vishakhapatnam next month.

Pulse Foods has said that it would invest around Rs 10 crore this year to expand its business. "Each restaurant costs around Rs 40-50 lakh and the kiosks require an investment of Rs 3-4 lakh," Mr Jain said. Additionally, it would also invest around Rs 2 crore on brand-building initiatives.

Pulse Foods is the hospitality initiative of the Rs 1,000-crore Poddar Heritage Group, which is also the promoter of brands such as Gillette, Singer and Style Spa, among others.

The company has also entered into agreements with various oil companies for "national tie-ups with petrol pumps" to open its highway restaurants.

It has set up its retail network in Delhi, Noida, Faridabad, Ludhiana and Gurgaon in North India, besides Bangalore in the South and Pune in the West. Pulse Foods is also contemplating a foray in the overseas markets. "We subsequently intend to open outlets outside India as well, starting with Europe and the West Asian Middle East markets," Mr Jain said.

The Group is also looking to adopt the franchisee model next year. So far all of its outlets have been company-owned. "We aim to open around 76 restaurants and expect a total investment of Rs 25 crore in the next three years," Mr Jain said.

The restaurant chain is also seriously examining a foray into institutional sales. "We would be present in all high traffic stations such as airports, railways and BPOs. To begin with, we have already opened a restaurant in a metro station in Delhi," Mr Jain said.