Nirula`s to dish it out across India

Nirula's, a restaurant-chain that has a presence primarily in the northern region, is planning a nation-wide expansion with an investment of Rs 200 crore in the next three years.

The company embarked on an expansion drive when the Nirula's family, that started the chain in 1934, sold its business to private equity fund Navis Capital Partners and Samir Kuckreja, a hospitality professional.

Kuckreja, who is now the managing director of the company, said, "We have signed up regional franchises in Rajasthan and Gujarat with a business model comprising 60 per cent equity and 40 per cent franchise. These will then open chains in these states. We are also scouting for a location to open a Nirula's in Mumbai on our own."

Nirula's also plans to add 35 more outlets across the country. High real estate prices continue to be a pressure for the company but its outlets at transit locations, like the one at the New Delhi airport, are giving faster returns. Kuckreja said that its return on capital employed (ROCE) at counters in transit locations is eight to 10 times higher than other places.

Thus, the company is planning to set up express counters and kiosks at the Mumbai airport, railway stations, and bus stops. It already has a tie-up with the Indian Oil Corporation, which it signed in 2005 for its express outlets at gas stations in Delhi.

Another way in which the company would leverage its presence is through tie-ups with real estate companies — it already has an association with Parsvnath developers for setting up chains.

Nirula's competes with multinational quick-service restaurant chains like McDonald's, which came to India in 1996, while revamping its infrastructure by adding information-technology capabilities and changing the current look of its outlets.