Breakfast cereal maker Bagrry’s India Ltd plans to launch quick-service restaurants (QSR) as it looks to accelerate growth.
The chain will be called Bagrry's On the Go and will set up its first outlet in the national capital next month, The Economic Times reported citing Aditya Bagri, son of the company’s founder Shyam Bagri.
An email to a spokesperson for Bagrry’s seeking comment didn’t elicit any response till the time of filing this article.
Launched in 1986, the privately held company is based in New Delhi. It makes breakfast cereals such as wheat flakes, corn flakes and muesli. It also supplies products made with oats, wheat milling products such as wheat flour and whole wheat flour, wheat bran and semolina.
The firm’s top line has grown rapidly for the last two fiscal years after staying in a range of Rs 35-45 crore for about a decade, as per VCCEdge, the data research platform of VCCircle. Net sales in 2014-15 jumped to Rs 77 crore from Rs 57.2 crore in 2013-14 and Rs 42.82 crore the year before, recording a jump of almost 35 per cent in the two years.
Bagrry’s competes with the likes of Kellogg, the world's largest cereal maker, Marico's Saffola and MTR in the growing market for breakfast products. The QSR segment in India is dominated by multinational chains McDonald’s and KFC.
The Economic Times report said also that Bagrry’s will serving oats-based sandwiches, burgers and bagels, muesli and wheat bran-based desserts and multigrain meals for lunch and dinner. The company has tied up with third-party kitchens to source cooked food made with its own ingredients, it added.
A number of QSR chains have set shop in India in recent years as changing consumer preferences boost demand for fast food. Many QSR chains also raised funding last year. In August, Trans-Continental Venture Fund invested an undisclosed amount in Impresa Hospitality Management Pvt Ltd, the company that owns Lebanese restaurant chain Maroosh. The same month, SLS Cuisines India Pvt Ltd, which runs QSR chain Roll Mafia, secured Rs 1 crore ($151,000 then) in seed funding led by Singapore-based Equentia Natural Resources.
Also in August, the Indian Angel Network invested an undisclosed amount in Wow! Momo, a Kolkata-based chain of quick service restaurants. And in September, Spring Leaf Retail Pvt Ltd, operator of a north Indian vegetarian QSR chain under Mast Kalandar, raised fresh funding.