Jumbo King in talks with HP, BP, IRCTC for kiosks

Jumbo King Foods Pvt Ltd, the Mumbai-based fast food chain is in talks with public sector and private companies like Hindustan Petroleum (HP), Bharat Petroleum (BP), Indian Railway Catering and Tourism Corporation Ltd (IRCTC) and GVK Industries Ltd for setting up its kiosks at highway petrol pumps, railway stations and airports.

Jumbo King, which specialises in vada pav is also expanding its network and setting up franchisees in cities like Bangalore, Hyderabad, Delhi, Ahmedabad, Vadodara and Surat.

"By March 2008, we want at least 120 Jumbo King outlets running across the country. We also want to strengthen our supply chain and other logistics like central kitchens to support our other plans. We are presently in talks with HP and BP for Jumbo King kiosks at their highway petrol pumps. Similarly, we are in talks with IRCTC and GVK Industries Ltd for kiosks at railway stations and airports," said Dheeraj Gupta, managing director, Jumbo King Foods Pvt Ltd.

According to Gupta, of the 120 stores planned as part of the expansion drive, 20 will come up in Gujarat.

Gupta denied setting up any company-owned stores, adding that franchisee stores tend to break-even much earlier. "Typically, a store requires an investment of Rs 15-18 lakh and breaks even in just six months or so. On an average, a store earns a revenue of Rs 40 lakh per annum, which is considerably good in the business," said Gupta.

Among its raw materials, Gupta said, the company procures gram flour from Indore, raw materials from UP while the bakery items are procured locally.

The company is also in process of expanding its central kitchens in major cities like Delhi and Bangalore.

The vada pavs come in price range between Rs 8 to Rs 16. Among its target customers are youth of 16-25 age group as well as call centre executives and students, said Gupta.