Riding on the back of a major expansion spree, global fast food chain McDonald's on Monday said it expects the Indian operations to be profitable from the next fiscal, 17 years after it set up shop in the country.
The company, which achieved break-even in 2007, is expecting returns on its investments from the current year. "We achieved cash break-even last year and we hope our real profits will start here-on," McDonald's India Franchisee (Northern and Eastern) Managing Director Vikram Bakshi told PTI.
The company, which currently runs 126 restaurants in the country, has so far committed an investment of Rs 1,200 crore (Rs 12 billion) in India for setting up cold chains and other infrastructure. In its latest round of expansion, McDonald's is investing Rs 400 crore (Rs 4 billion) over the next three years.
"We will set up 40 outlets by the end of the current year at an investment of about Rs 100 crore (Rs 1 billion)," Bakshi said. It is also looking to expand its newly set up kiosks format by opening 40 more in the northern and eastern regions.
The company aims at doubling its turnover every three years, Bakshi said without disclosing details. "Our aim is to now push for numbers wherever it is possible. We are talking of doubling our turnover every three years for at least six years. Automatically, the number of outlets should also double," Bakshi said.
Amid controversies and opposition to MNC's, Mcdonald's started ground work for its Indian innings in 1991 and opened its first outlet five years later.