The current quarters have noticed a series of initiatives beyond ‘Domino’s, which includes FMCG, Biryani, Hong’s Kitchen ramp-up and 10.8% stake in Barbeque Nation. JUBI has now picked up a 32.8% stake in DP Eurasia, which has presence in Turkey & Russia amongst other individuals, at eye-catching valuation. While this raises issues (volatility, bandwidth and so on.), investment is smaller at Rs 250 crore and regardless of being the biggest shareholder, there will not be line-by-line consolidation.
Beyond Domino’s: In the final decade, JUBI has focused mostly on Domino’s and there has been some work to scale up Dunkin’ which met with restricted achievement. In 2019, JUBI forayed into Chinese by way of personal brand Hong’s Kitchen, which at present has 10 retailers. During lockdown final year, JUBI also expanded into FMCG by way of a variety of prepared-to-cook and plans are underway to expand into prepared to consume as properly. In 2020, JUBI also forayed into Biryani beneath personal brand, Ekdum!. The organization also picked up 10.8% stake in Barbeque Nation for `0.9 billion despite the fact that this is purely a monetary investment, per management.
Also Read: What to do with your stock market place investments in 2021
DPE deal: JUBI has now picked up 32.8% stake in DP Eurasia (DPE) for GBP24.8m from Turkish Private Equity Fund II LP. DPE is listed on London Stock Exchange and based on Bloomberg estimates, the deal valuations comes to about <8x EV/Ebitda and <1x EV/Sales, a substantial discount to JUBI’s personal valuations.
DPE is the exclusive master franchisee of the Domino’s Pizza brand in Turkey, Russia, Azerbaijan and Georgia. It has a network of 771 retailers, the bulk of which are in Turkey (568) and Russia (190). Majority of DPE retailers are sub-franchisee retailers (550/771), although the rest 221 are organization-operated.
Also Read: Creatio raises $68 million for low-code enterprise approach automation
JUBI’s stake tends to make it the biggest shareholder in the organization regardless of this, the organization would not be consolidating the target asset on a line-by- line basis. A comparison of JUBI FY20 vs DPE 2019. JUBI’s Domino’s retailers are 74% larger than DPE total retailers despite the fact that JUBI retailers are 5.5 occasions DPE personal retailers. JUBI’s revenues are practically twice of DPE revenues – the former has noticed income development at 8% CAGR vs. 4% for the latter in Indian rupee terms more than 2014-20.