Vidli Restaurants Ltd
Vidli Restaurant
Ltd. Is a "Kamats" group
company running chains of restaurants serving hygienic standardize Veg food
items in a quick serve format at various outlets on national highways, state
highways and cities. The group is known for its brands "Vithal Kamat"
and' Kamats'..
The Company started
its operations in November 2013. Since then, the company started expanding its
restaurant chain and concentrated on standardizing its products and services
through centralized purchasing and training system. As on 30th September 2016 they
have 84 outlets.
Started
restaurants in western
and central territories on major highways and recently started operations in
select cities also.
The Delhi airport outlet is Operational from
the Month of November 2016 and is doing good business from 1st month
onwards, company plans to open few more outlets at various Airports across the
country.
The south Indian food
& snacks is very well accepted across their outlets.
Going ahead they will
also open take away Quick service restaurants near all major local Railway
stations in Mumbai.
Company largely
targets affordable segment of the market through our outlets. Presently, our
operations are categorized into family dining, khaojao and kamat's corner model.
Recently opened outlet
at Delhi Airport, which is doing brisk sales from day one.
Brands-
Vithal Kamats – Original Family Restaurants
It is a trusted vegetarian family restaurant chain that deliver veg food and
refreshments on highways through dedicated and trained team who are also owner
of the franchise.
Vidli by Kamats
Vidli Restaurants Pvt Ltd is promoted by the Kamats Group – a hospitality brand
operating a large number hotels and restaurants.
Kamats Academy
Providing Residential training to franchisee staff at Kamats Academy in Panvel.
Objects of the Public Issue:
The objects of the
Issue are:
1. Finance establishment of new food joints;
2. General Corporate Purpose;
3. Issue Expenses.
Issue Detail:
»» Issue
Open: Feb 3, 2016 - Feb 5, 2016
»» Issue Type: Fixed Price Issue IPO
»» Issue Size: 1,310,000 Equity Shares of Rs 10
aggregating up to Rs 1.31 Cr
»» Face Value: Rs 10 per Equity Share
»» Issue Price: Rs. 10 per Equity Share
»» Market Lot: 10000 Shares
»» Listing At: BSE SME
The company has entered into Master Franchise
agreement in last August with MNM group for a period of 5 years wherein the
said group would have exclusive rights to give franchisee in Gujarat region
Key Management Profile
Sr.
No. Name Nature
of Directorship
1. Mr. Ramnath Pradeep Chairman
and Independent Director
2. Ms. Vidhi V. Kamat Managing Director
3. Mr. Vaibhav Rathi Independent Director
4.Mr. Arun
Jain Independent Director
5.Mr Amit Mehta CFO
6 Mr Chandrakant
Shetty CEO
Ms. Vidhi Kamat is
daughter in law of Mr. Vithal Kamat owner of kamat hotels and wife of Mr. Vikram kamat
Mr.Vikram Kamat is
Chief mentor to the company and give full time in guiding the company.
Shareholding pattern – Promoters
-
|
Statement
showing shareholding pattern of the Promoter and Promoter Group
|
|
|
|
Category of
shareholder
|
No. of fully
paid up equity shares held
|
Total nos.
shares
|
Shareholding
as a % of total no. of shares
|
|
|
|
|
A1) Indian
|
|
|
0
|
|
|
Individuals/Hindu undivided Family
|
5,42,000
|
5,42,000
|
12.52
|
|
|
Vidhi Vikram Kamat
|
5,42,000
|
5,42,000
|
12.52
|
|
|
Any Other (specify)
|
19,70,000
|
19,70,000
|
45.5
|
|
|
VITS HOTELS WORLDWIDE PRIVATE LIMITED
|
7,75,000
|
7,75,000
|
17.9
|
|
|
CONWY FINANCE AND LEASING PRIVATE LTD
|
11,95,000
|
11,95,000
|
27.6
|
|
|
Sub Total A1
|
25,12,000
|
25,12,000
|
58.01
|
|
|
A2) Foreign
|
|
|
0
|
|
|
A=A1+A2
|
25,12,000
|
25,12,000
|
58.01
|
|
Major public
shareholding –as On 30-Sept-2016
Company have placed at 14%- 15% equity to
the employees so the employees have the ownership and are much more motivated
to take the company to next level.
Business Analysis –
Vidli Restaurant is into running chains of restaurants serving hygienic
standardize Veg food items in a quick serve format at various outlets on
national highways, state highways and cities.
At the time of listing in Feb - 2016 they
had 42 operational outlets.
As on 30th September 2016 they have total
of 84 outlets 68 operational outlets and 16
more are signed-up, which will be operational in next 3 -4 months.
The Run Rate for signing the franchisees is
2 per month as of now.
The geographical spread of franchisee is
as follows –
Gujrat – 3
Maharashtra – 56
Delhi - NCR - 2
Shimla – 1
Manali - 1
4 new outlets added in the month
November and December 2016 –
1- Terminal1-C Delhi Airport - daily
sales 62,000/-
2- Waked, Pune. At Mumbai-Pune
expressway - daily sales- 71000
3- Nasik highway At Rajgurunagar (near Bharat
forge SEZ) - daily sales - 33000
4- Nagpur at National Highway - daily
sales - 24000.
These four outlets will add 55-60 lakhs
to company’s bottom line in FY 18.
Most of the Franchisee in Maharashtra
are on the highways, and due to Central Government’s focus Road & Highway
sector the highway traffic increasing day by day across country presenting
opportunity to open more outlets on highways.
Other than highways the company is also
expanding the reach within city limits i.e. in Malls and in market locations.
Recently opened outlet in Palava Mall
has got a very positive response and the sales are very promising from first
week itself.
They have opened outlet outside MEERA
ROAD STATION getting very good sales from first month of 24000 – 28000 per day.
The entire kitchen in this outlet is
fitted in only 100 sq ft area which will enable to open outlets in congested
marketplaces and high streets.
The Delhi Airport outlet and the Meera
Road Railway station outlet will give them excellent visibility and branding.
Company is getting a lot of inquiries
for franchisees as ROI for the franchisee owner comes around 40-50% which is
unheard of in the similar businesses.
Due to such a high ROI a franchisee
recovers whole investment in 1.5 -2 years .
Some franchisee owners have taken 2 to 3
franchisees.
The company take 10 lacs as license fees
for Dine in format -1500 to 2000 sqft
and 7 lacs for
khao jao outlet – 800-1200 sq ft .
The license is for a term of 10 years and
after 10 years the franchisee will have to renew the agreement.
The company have established a centralized
warehouse in THANE in Mumbai and in PUNE.
They are in midst of fine tuning the
centralize supply chain in state of Maharashtra, once the model fine-tuned the
company is expected to Roll out in other states aggressively.
They supply premixes in powder form for all
major items like Idli, Dosa, Batata vada, Medu Vada, Upma, Paav Bhaji, Saambar,
Tomato gravy, onion gravy, Garlic chutney, Chhole masala.
Due to this the Taste is consistent across
all outlets.
I have been to 21 different outlets of
their and found that all are doing excellent business; they maintain absolute
cleanliness and have consistency in taste.
Company is also supplying Tea and Cooking
oil through centralized purchase to the franchisee outlets due to which
franchisees get these items at a substantial discount from the market price.
Company has a training academy to train the
staff for franchisees in Panvel which is another plus.
They encourages the workers to work for 3
years and then become a franchisee owner
Good no. of the franchisees are past
employee owned.
The company has designed a Automatic Dosa
making machine which is fitted in palava mall outlet it dispenses thousands of ready to eat Dosas
per day, they have successfully found a solution to most cumbersome task of manually making Dosa’s.
The company management is full of dynamic
individuals most of whom have years of experience in the hospitality and
Restaurant industry.
Company has hired Mr. Lowell Farkas as a consultant from United States of
America.
He has headed the Panera chain which boasts of over 4000 outlets in the
USA.
He is working with the brand to put international standards in place and
in strategizing the next phase of growth both national and international
The average sale per franchisee outlet is
around 8 lacs per month.
Presently all franchisee combine are doing
a sale of 4.3 crore per month,
The company takes 7% royalty in first year
8% in second year and 9% in third year on sales.
As it’s a franchisee model and is asset
light the company generates a lot of free cash from royalty income and License fees.
If they sign 25 franchisee in a year they roughly get 2
crores of cash only from license fees.
On a conservative side end of fy 17 they will have 85 outlets, fy 18 -130,
fy 20 -300 outlets.
They are expected to do the PAT of 1.3 Crores
in fy 17 and PAT of 4.7 Crores in fy 18.
They have concrete plans to open 300
outlets by fy 20 where the PAT could be 14-15 crores.
At that time Stock Market can easily give
them a PE of 60-70 to the high growth
QSR segment company.
So the Market cap would be 1000-1100 crores
and corresponding Stock price would be 2300-2500/-
I feel that in India more people are ready
to eat Idli dosa in a hygienic setup at Rs 50- to Rs70/- rather than eating
Pizaa at 150-350/-
So in long term say 10-12 years I don’t see
any reason why this company will not come close to jubilant foodworks having a
market cap of 6300 crores, with 1100 outlets.
Vidli surely have the capability and demand
to open more than 2000 outlets in next 10-12 years.
A case in point is Goli Vada pav , they
started in 2011 and in end 2015 they had 300 outlets and were doing sales of 56
crores.
What Patanjali is doing in Ayurveda Vidli Restaurants
can do something similar in Quick service Restaurants.
With the increasing awareness about healthy
food, where south Indian food have top of the mind recall and increasing
acceptance of its Restaurants ,VIDLI Restaurants
seems to be a on a secular growth path .
Cons –
1. Execution capabilities of
management outside Maharashtra are not known.
2. It is to be seen how well
the south Indian dominated menu is accepted in north Indian states
3. Company focusing on which other states other than Maharashtra, Gujarat,
Delhi, is now known.
4. Company has to put system and surveillance for Transparent Billing and
revenue collection from franchisee.
5. Road map for centralized warehousing and supply management outside
Maharashtra is not clear.
6. Legacy issues of
kamat group, On this front Mr Vikram kamat have resigned from all posts from
Kamat hotels and is full time mentoring Vidli Restaurtant, both Vithal kamat
and Vikram kamat families have issued notices in new-papers about their
separation and perusal of separate businesses and careers.
Important
links –
