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 –
 
 
 
https://www.youtube.com/watch?v=bVohgIIfCZU – Sadhak, Chalak, & Malak programme where they make their employees as owners.
https://www.youtube.com/watch?v=0UC3JcqZbTI  – process of how they make the dishes


 
 
DELHI AIRPORT OUTLET PICS – 
 
 
 
 
 

WAKAD – MUMBAI-PUNE EXPRESSWAY OUTLET PICS –
HUGE OUTLET ON 2 ACRE LAND PARCEL WITH SEATING CAPACITY FOR 200 PEOPLE


 


 


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