Nirula's: The charge of the old brigade

For many an adult Delhiite, Nirula's is a part of the growing-up years - indeed, so much a part that the memories all merge and fade into one another. Perhaps just one of those things that one loves and, hence, takes for granted as something that always will be there!

Well, as they all say, time never stays that way. New generations come and stake claim to the ownership of the world – new idioms and rules of living find their way into the old order. The old ways either have to mould themselves accordingly, or they choose to exist for the sake of their old believers. Or, they simply perish.

Established in 1934, Nirula's was to become the first quick service restaurant (QSR) chain in Delhi. At least a couple of generations of the capital's populace must have had their first taste of the hamburger at the corner joint at L Block in Connaught Place. Another first owned by this landmark is the Chinese Room, Delhi 's oldest Chinese restaurant.

In 2005, Nirula's was presented in the market for a sell-off of operations (the reason, from all accounts, is mainly a personal one). The company was said to be in talks with Philippines-based Jollibee, among others. There was also speculation about an IPO. After about a year, Nirula's formally came to an arrangement with a $500-million Malaysian company in a deal said to be in the range of Rs 85-90 crore.

With effect from July 1, 2006, Nirula's passed into the ownership of Malaysia-based private equity fund Navis Capital Partners, the majority stakeholder, and Samir Kuckreja, with a minority stake. Kuckreja, a relative of outgoing owners Lalit and Deepak Nirula as well as a former executive director with Nirula's, assumed the post of managing director. And the call for change was imminent.

The new management made their intentions clear – that, save the name, everything else was due for a makeover, be it design, look and feel, ambience, staff and service decorum, market expansion strategy, or communication parameters. It was time to seek out the new generation, before they were lost for good to other branded spaces that boasted of coffee, conversations and glamorous chutzpah!

Here, Managing Director Samir Kuckreja deals with some pertinent questions from coordinating editor Padma Pegu and senior correspondent Karan Mude.

What formats of retailing does Nirula's have besides family-style restaurants, express outlets, fine-dine restaurants, fuel pump outlets, and highway outlets?

In addition to the above-mentioned formats, we also have Food Court Units and ice-cream kiosks. Both of these formats help us in increasing our reach to consumers. The Food Court Units offer a variety of food to the moviegoers. As famous and cherished as Nirula's ice creams are, it makes for good reason to take our ice creams to maximum number of consumers.
In the hospitality segment, Nirula's has two hotels – one in Noida and another in Panipat.
We also have bars under the name Pegasus.

Which format is the company focusing on, and why?

Currently, our strongest emphasis is on the Quick Service Restaurant (QSR) business. The QSR category comprises Family Service Restaurants, express outlets, Food Court Units, and ice-cream kiosks. These formats will form a substantial part of the pan-India presence that we have on our expansion map. The reason for laying emphasis on the QSR category is that this format serves the maximum number of customers. Investing more in this format is beneficial for our customers and us as well.

Has the company formalised any deals for the proposed air catering business?

There has not been any formalisation of deals in this business domain so far.

How many states/cities/towns is Nirula's present in? What is the current number of outlets, and what is the dominant format?

Right now, we are present in Delhi, Haryana, Uttar Pradesh, Uttaranchal and Punjab. The number of outlets stands at 45. Out of these, 35 are QSRs, which also host 8 Nirula's pastry shops. Soon, Nirula's will also be entering Rajasthan and Madhya Pradesh, which will be followed by a nationwide expansion.

What are the expansion plans within the country? How much investment that will entail?

By 2009, we plan to open another 150 outlets. In the next three years, we plan to establish Nirula's presence all over India. And it must be mentioned that it is not only the metros, but also the tier II and III cities that you will find Nirula's in. These cities offer tremendous opportunities that have not been tapped so far.
In terms of investment, we will invest Rs 100 crore over the next three years to fuel this expansion.