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Dunkin' Donuts to enter India with Jubilant

Jubilant FoodWorks will set up the first Dunkin' Donuts store in India by early next year and expand gradually in the first couple of years.

twitter-logo PTI   New Delhi     Last Updated: February 24, 2011  | 16:04 IST

Jubilant FoodWorks, which runs restaurant chain Dominos Pizza in India, on Thursday said it has signed a master franchise agreement with US' leading baked food and coffee chain Dunkin' Donuts to bring the brand into the country.

The two firms that have been in talks for two years said they have agreed to a partnership that will help the US food chain's expansion in India.

As part of the agreement, JFW will set up the first Dunkin' Donuts store by early next year, although it did not specify the location, and expand gradually in the first couple of years.

"We believe that Dunkin' Donuts brand is extremely relevant for India not only due to its strength in donuts and coffee, but also due to differentiated food and beverages menu," JFW Co-Chairman Hari S Bhartia said.

While the firm did not comment on the number of Dunkin' Donuts stores to be opened and investment but said it is a venture that will require very less capital expenditure.

"This business requires very low capex, lesser than a Dominos store, and has high return on investment. The investments will be made from internal accruals and we have cash reserves," JFW CEO Ajay Kaul said.

Commenting on the partnership, Dunkin' Donuts CEO Nigel Trivis said: "Expansion in India is a part of Dunkin' Donuts' international growth plan and we focused very clearly on JFW as they are a very successful group and they have done a credible job with Dominos."

In 2010 Dunkin' Donuts global sales were $6 billion. It has more than 9,700 outlets in 31 countries worldwide.

JFW on the other hand operates 364 food outlets in the country. In the quarter ended December 31, 2010 the company's net sales stood at Rs 185.63 crore.

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