January 27, 2021

Jubilant FoodWorks: Jubilant FoodWorks enters FMCG house; units up direct competitors with HUL, Nestle

New Delhi: Jubilant FoodWorks has stepped into the Rs 500-crore ready-to-cook condiments house, establishing direct competitors with packaged meals makers together with Nestle, Hindustan Unilever and Dr Oetker.

JFL’s first gross sales channel for the ready-to-cook sauces and pastes franchise, known as ChefBoss, will likely be on e-commerce platforms.

JFL senior VP (new enterprise) Vikran Sabherwal mentioned in a press release: “Demand for ready-to-cook meals merchandise has been growing over the previous few years on account of busier existence of shoppers and their want to discover completely different cuisines at residence. Throughout Covid we’ve got seen an acceleration of this pattern and due to this fact an exponential development in demand for able to cook dinner merchandise.

JFL, the grasp franchisee of Domino’s Pizza and Dunkin’ Donuts, operates 1,335 Domino’s Pizza eating places in India.

Analysts mentioned the transfer is optimistic for JFL and presents the chance to faucet the quickly rising cooking-at-home pattern apart from synergising with Domino’s Pizza, however added the problem will likely be reaching supermarkets since JFL’s width of merchandise is restricted in comparison with Nestle and HUL.

“There may be synergy in sourcing, given big shopping for of spices, condiments and sauces. JFL can cross-market these merchandise and work intently with meals tech aggregators like Amazon,” Edelweiss Securities government VP Abneesh Roy mentioned.