McDonald's inks deal with IOC to increase network

MUMBAI: Retail food chain company McDonald's India today said it has joined hands with Indian Oil Corporation ( IOC) to increase its presence in petrol stations in West and South and aims to more than double its sales by 2014 from both these regions.

Under the agreement, IOC will provide space to McDonald's for opening 'Drive Thru' restaurants in the West and South India, McDonald's India Vice-chairman Amit Jatia told PTI here.

IOC has more than 8,000 fuel outlets in South and West India, and this agreement will support McDonald's expansion plans and help it double its presence in the regions by 2014, Jatia said.

"We plan to open about 30-50 Drive-Thru outlets in five years mostly in Tier II destinations in the south and west at an approximate investment of Rs 175 crore.

This increase in presence will also more than double our sales (from both the regions)," Jatia said, adding that the company is already scouting for locations.

Presently, McDonald's has 108 outlets in the South and West and a total 211 across the country.

By 2014, the fast food giant plans to up its headcount by another 10,000 in the south and west where, by then, it aims to have a chain-network of 216, he said.

McDonald's already operates restaurants under the oil alliance programme with Hindustan Petroleum Corporation Ltd (HPCL) and Bharat Petroleum Corporation Ltd (BPCL).

In India, McDonald's is a joint-venture company managed by two Indians, while Amit Jatia, from Hardcastle Restaurants owns and spearheads McDonalds in the West and South, in the North and East Vikram Bakshi's Connaught Plaza Restaurants do the same.