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FAST FOOD INDUSTRY: GROWING SECTOR IN INDIA


With the rapidly growing middle class population and changing lifestyle, India is blessed with one of the fastest growing fast food markets in the world. The Indian fast food market is growing at an annual rate of 25-30%. Almost all the world’s big fast food brands have succeeded in making their presence felt in the country and most of them are posting appreciable growth.

You may not have heard of Yum! But you will almost certainly have come across its key fast food brands, including KFC, Taco Bell and Pizza Hut.

Most of the popular fast food chains have chalked out massive plans for expanding their business and presence throughout the country. Moreover, foreign fast food chains are aggressively expanding their presence in the country.

For instance, Domino’s plan to open 60-65 outlets every year for the next three years (2010-2012) currently 300 stores across INDIA

Yum Brands Inc is also preparing for its massive expansion across the country. It plans to open 1000 fast food outlets by 2015. Currently 75 stores across INDIA

McDonald’s plan to double is store number to 300 as compare to its present 150 stores by 2015.

This information clearly indicates that there is tremendous growth in fast food industry. Now, question is how we as investor make money out of this as these foreign companies are not listed in Indian Stock market.

So our advisory team is making our one of the main multibagger public to all our readers….

If we check all above fast food companies it is very much clear that all companies are very big in size and in India they want to grow. so they will also be very choosy to get their suppliers , yes you are guessing correct their raw materials , these companies take raw materials from very reputed or I can say no. 1 companies.

For instance, Fresh vegetables from Reliance Fresh .

But our multibagger is not reliance. Our main focus is on one of the main raw material common for all fast food companies and that is Chicken.

Only listed Poultry Company is VENKY’S INDIA the main or only supplier to all fast food giants.

That means if fast food industry grows VENKY’S INDIA will grow along with them and it is growing, way back we have given the recommendation to buy vanky @ 145-150 range and as per today its CMP is @ 700 it had made a high of 1200 that means it still got the potential to grow further.

About Venky’s ( India)

Venky's (India) Limited formerly known as Western Hatcheries Limited was established in 1976, mainly to produce day-old layer and broiler chicks for the dense poultry markets of North India.

Over the years, Venky's (India) Limited embarked upon new ventures in regular succession, adding tremendous value to the company, giving it an edge in technology and high returns on investment. The company has steadily grown to over 30 units spread across India.

Today, Venky's impressive portfolio includes animal health products, pellet feeds, processed, and further processed chicken products, solvent oil extraction, and SPF Eggs. The company's Specific Pathogen Free Egg unit (in technical collaboration with SPAFAS Inc. USA) is among four such units in the world and the only one of its kind in the developing world.

Diversifying from mainstream poultry products, Venkys (India) Limited has added to its credit, manufacturing facilities for nutritional health products for humans, and pet food and health care products. The company has steadily grown to over 30 units spread across India.

The Forbes business magazine of USA ranked Venky's (India) Limited as 67th among the 100 best global small companies in the year 1999-2000.

VPS Advisory Services make one of our multibagger public and it is Venky and we see huge potential in this company for long term perspective.


Happy Investing