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Nirulas, the Delhi-based ice-cream and fast food chain, to become a national player within the next two-three years has decided to appoint master franchisees. These franchisees will invest in restaurants in the designated area and Nirulas will charge a management fee.
The company plans to begin the exercise by appointing a master franchisee in Punjab followed by Rajasthan and Maharashtra in the first one or two years. Depending on the success in these regions, the brand would be taken to the rest of the country.
"The prime objective is expansion and diversification. Nirula's is already a strong brand in the national capital region and is well known in other parts of the country. It is thus prudent for us to start exploring business in other potential towns now," Sandeep Madan, general manager (marketing), Nirulas Corner House Pvt Ltd, said.
He added that the expansion strategy will enable the company to reach areas that have immense potential and demand for its products.
The company, however, has no plans to directly invest in its outlets, Madan said. "Our equity is our brand, systems and processes for which we will charge a management fee," he added. Madan, however, added that the company has not initiated any talks with potential partners.
"At this juncture, we are firming up our plans. Talks would only begin once we are ready with the complete implementation plan and modules," he added.
The company had recently gone through an organisational revamp which was being viewed as the first step towards taking the company public. The extent of stake that the company wants to offer to the public is still not known.
The over Rs 100 crore (Rs 1 billion) company is already opening outlets in Punjab. It has identified locations at Amritsar, Ludhiana, Patiala and Chandigarh.
The officials claim it is a cash-rich and profit-making organisation.