New Delhi: Domino's Pizza India Limited (DPIL) is working towards launching an initial public offer (IPO) over the next 24 months to finance two overseas subsidiaries to be set up in Bangladesh and Sri Lanka. An investment of four million dollars will be made by the end of 2000-01 fiscal to set up retail outlets in the two countries.The company is currently in the process of finetuning plans for the public offer and deciding on the quantum of equity that is to be divested. "We are looking at going public within two years," DPIL's chief executive officer Pavan Bhatia said.
DPIL has been promoted by the Vam Bhartia Corporation with a controlling 75 per cent holding, while the remaining stake is with Chase Manhattan.Regarding the overseas ventures, Mr Bhatia said the two subsidiaries DP Lanka and DP Bangladesh will be wholly-owned by Domino's Pizza. "The ventures will undertake foreign direct investments for setting up six retail outlets in each country."
These are part of the major expansion exercise planned by the company for South Asia. "We want this vehicle to be a foreign exchange earner. Besides, with the international operations in place, we will also indulge in rotation of employees," he added.
Mr Bhatia said, "We have chalked out a three-year business plan under which we intend to become a major force in the neighbouring markets."
The company is also hiking the number of its company-owned retail outlets in India to 76 in 29 cities by the first week of November from the existing 67 stores. The first Domino's store in India opened in 1996.
Riding on these plans, the company expects to double its turnover every year. Mr Bhatia, however, refused to divulge details on the turnover and profit figures.
Domino's has also tied up with real estate consultant CB Richard Ellis. Richard Ellis will help Domino's in market review, location feasibility, and site selection, acquisition and project management. A comprehensive nationwide survey has already been conducted and some of the sites have been finalised under the three categories - super store, regular store and Express store.
The company plans to open 29 Express stores in various cities. It aslo plans to set up shops at the arrival lounge of international airports in Mumbai and Delhi, VT station in Mumbai, New Delhi railway station, Indian Institute of Technology, Delhi and Jawaharlal Nehru University.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.