Case on Nirula's

Topics: Food, Fast food, Indian cuisine Pages: 9 (2775 words) Published: November 12, 2008

Nirula's, a well-known name in the hospitality industry, had like all success stories a small beginning. The Nirula's Family came to Delhi in 1928. The Nirula brothers before going into the Hotel and Food Service Industry tried their hand at various professions including running a pharmacy, optician shop and a photostudio.

However, they soon realized the paucity of good eating-places in and around New Delhi. Though completely new to the business, they began "HOTELINDIA" in 1934 at Connaught Place with 12 rooms, a restaurant and a bar license.

The starting of the 'Chinese Room' Restaurant and introduction of espresso coffee for the first time in India by Nirula's was done in the 1950's. The 60's witnessed the opening of two specialty restaurants, La Boheme a modern restaurant serving Hungarian food & Gufa an Indian specialty restaurant. The 70s saw the company venture into the fast food business with the Pastry Shop, Snack Bar, Hot Shoppe and Ice Cream Parlour. The Potpourri restaurant with the first Salad Bar in India was also opened in this period.

The eventful decades of 1980s & 1990s saw the opening of the Central Kitchen and Family Style Restaurants at Vasant Vihar, Chanakya, Defence Colony, Noida and numerous other strategic locations in the NCR.

Today, the Noida production facilities include the Bakery, Confectionery, Cheese Plant, Ice cream Plant, Food Processing Unit and Hot kitchen.
Nirula's widened its presence in North India with the opening of restaurants in Panipat, Dehradun, Chandigarh & Lucknow. Association with Indian Oil Corporation in 2005 witnessed the opening of new Outlets at gas stations at Dwarka, Punjabi Bagh, Janakpuri, Gurgaon and Chandigarh.

In June 2006, Navis Capital Partners and Managing Director, Samir Kuckreja acquired the Nirula's Group of Companies.

After the acquisition, a new senior management team was created by drawing the best talent in the industry. The new team at Nirula's undertook a massive brand revamp exercise. While retaining the brand name and logo of "Nirula's", new sub-brand logos were created for Nirula's ice-creams, Pastry Shop, delivery business and others.

New graphics, logos, menu panels and packaging were created by well-known designer Ms. Gopika Chowfla. Interior and exterior designs were created by Lotus Designs. New staff uniforms were created by the famous fashion designer Manoviraj Khosla.

Changes were also made to the service design by placing female Guest Response Executives (GRE) in outlets. But the Nirula's Group retained the USP of the brand in terms of wide menu choices and affordable prices.

The Synovate Hotspots Report 2007 on India mentions Nirula's as the only Indian food chain amongst MNCs to be in the top five in India.

The company plans to venture into a large number of quick service restaurants in every major city in India by the end of this year. With an aggressive expansion strategy, the organization plans to have a national presence by opening 150 new restaurants in the next 3 years. These will include Restaurants, Ice cream kiosks and Express Outlets at shopping malls, petrol pumps & other high footfall locations.


Nirula’s have 14 privately held locations in and around Delhi and the main concern in the case is if Nirula’s will be able to face competition from big international players such as McDonald’s, KFC etc. however, management is not scared of competition because It thinks it gives steady attention to quality, successful adaptation to Indian Fast Food market and variety in the menu .

Nirula’s defies categorization and caters to variety of tastes appealing to urban Delhi resident. It has 3 different outlets; catering to the local tastes in the area. The number of customers of Nirula’s doubled over 10 years and the turnover also increased more than 4.5 times. It also a has a cost advantage as compared to its international competitors because of its...
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