In an announcement that could send shivers down the spines of Pizza Hut, Dominos and even McDonald’s, Indian food retailing giant Amul announced plans to set up 2000 pizza parlours countrywide as a means to popularise use of its mozzarella cheese. The parlours sell a basic pizza (capsicum/tomato/onion) at Rs20/- (US$0.42) per large pizza versus Dominos’ starting price of Rs90 and Private-Brands’ Rs50.
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Amul has been running a low-profile pilot project of ten parlours in small towns in Gujarat. These have given it the confidence to go countrywide. The pizza parlour drive is part of Amul’s plan to change Indian food habits to promote pizza and hence mozzarella Cheese. Amul is India’s major cheese producer, so this is also a vertical integration.
Adopting a typically Indian business model, Amul will appoint franchisees, give them equipment and facilitate their training, but will permit use of the Amul brand at each outlet only after the franchisee measures up to its standards.
By Navroz Havewala, just-food.com correspondent
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