HOW BUSINESS WORKS

Institute:
Course: M.H.R.D.M. (2018-2021)
Company: Goli Vadapav Private Limited
Name: Alisha Jathanna
Roll No.: 12
1
 Contents
1. INTRODUCTION................................................................................................................. 4
1.1. What is a business? ..................................................................................................... 4
1.2. What is the basic business working layout? ................................................................. 4
2. INTRODUCTION TO GOLI VADAPAV PVT. LTD............................................................... 5
2.1. Why Goli Vada Pav Pvt. Ltd.? ...................................................................................... 5
2.2. Goli Vada Pav in a Nutshell .......................................................................................... 5
2.3. About the CEO and Genesis of Goli Vada Pav Pvt. Ltd. .............................................. 6
2.4. Awards & Recognitions ................................................................................................... 6
3. ECONOMICS ...................................................................................................................... 7
3.1. Growth of Indian Fast Food & QSR Market .................................................................. 7
3.2. Vada Pav in Mumbai and Politics ................................................................................. 8
3.4. Effect of Potato Prices on the Vada Pav business........................................................ 9
3.5. Effects of the Changing Society.................................................................................. 10
3.6. Importance of Technology .......................................................................................... 11
4. MARKETING ..................................................................................................................... 12
4.1. Brand Name and Identity ............................................................................................ 12
4.2. Logo, Colour Mix and Taglines ................................................................................... 13
4.3. Competition Scanning ................................................................................................ 14
4.4. Product ....................................................................................................................... 15
4.5. Promotions ................................................................................................................. 16
4.6. Process ...................................................................................................................... 21
4.7. Packaging ................................................................................................................... 24
4.8. Place .......................................................................................................................... 25
4.9. Price ........................................................................................................................... 26
4.10. USP of Goli Vada Pav ............................................................................................. 27
4.11. SWOT Analysis ....................................................................................................... 28
4.11.1. Strengths .......................................................................................................... 28
4.11.2. Weakness ......................................................................................................... 29
4.11.3. Opportunities .................................................................................................... 29
4.11.4. Challenges ........................................................................................................ 29
4.12. Strategy ................................................................................................................... 30
5. INNOVATION .................................................................................................................... 31
2
6. COST AND MANAGEMENT ACCOUNTING .................................................................... 32
7. INFORMATION TECHNOLOGY ....................................................................................... 33
8. HUMAN RESOURCES ..................................................................................................... 34
8.1. Organization chart ...................................................................................................... 35
9. PROCESS AND OPERATIONS ....................................................................................... 36
10. TAX ................................................................................................................................ 37
11. LEGAL OBLIGATIONS .................................................................................................. 37
12. STATISTICS .................................................................................................................. 39
13. FINANCE ....................................................................................................................... 40
THANK YOU NOTE ................................................................................................................. 41
BIBLIOGRAPHY ...................................................................................................................... 42

3
 1. INTRODUCTION

1.1. What is a business?

An organization or economic system where goods and services are exchanged for one
another or for money. Every business requires some form of investment and enough
customers to whom its output can be sold on a consistent basis in order to make a profit.
Businesses can be privately owned, not-for-profit or state-owned.

1.2. What is the basic business working layout?

4
2. INTRODUCTION TO GOLI VADAPAV PVT. LTD.

2.1. Why Goli Vada Pav Pvt. Ltd.?

‘My Journey with Vada Pav’ is a book authored by Venkatesh Iyer, found & CEO of Goli
Vada Pav Pvt. Ltd. The book is also available in the library of the very prestiged Welingkar
Institute of Management Studies. The book is a descriptive of the journey of Venky
(Venkatesh Iyer) a middle class man, who dreamt big and did not stop at being an
investment banker but had the courage of taking risks and making a difference. It is not
only inspirational and highly motivational but also a very good book to understand how
business works in layman’s terms and apply theoretically to a project like this. Also, Mr.
Venkatesh has videos on platforms like Josh talks and news channels etc., where he
speaks of how he started and sustained the business and therefore, I found no other best
fit for this project.

2.2. Goli Vada Pav in a Nutshell

 Goli Vada Pav isgalore an Indian fast food restaurant chain originated from Mumbai,
Maharashtra, India. It was founded in 2004 as a vada pav restaurant by Venkatesh Iyer.
 The parent company is called Goli Vada Pav Pvt. Ltd.
 It comes under the fast food category.
 Belongs to the food & beverages industry.
 Today, Goli Vada Pav has 300 stores in 100 cities across 20 states of India. The
expanse is from Gorakhpur in North to Calicut in South and Vadodara in West to
Kolkata in East.
 Venkatesh hopes to have a Pan-India footprint. It sells about 75,000-100,000 vada pav
a day.
 The Basket of products include varieties of Vada Pavs, Vada Rolls, Curry Pavs, Sides,
Beverages and Desserts. Goli Vada Pav is positioned as an alternative to traditional fast
food and rivals the conventional burger.
 The franchise retail chain has now grown to a ₹55 crores business as of 2015 which
plans to make a multi-fold jump to ₹350 crores with the opening of 1000 outlets Pan-
India.

5
 2.3. About the CEO and Genesis of Goli Vada Pav Pvt. Ltd.

 It was in 2003 when investment banker Venkatesh Iyer brainstormed a business idea
over a glass of chai and Vadapav in hand. With 15 years of experience in the corporate
world, he set out to corporatise Mumbai's famous street food – the Vadapav! He
observed keenly the street vendors of vada pav and was fascinated by the fact that 50
vadas bobbed out of the big kadai in five minutes, which meant more quantity in less
time.
 With an initial investment of Rs. One crore, he started hole-in-the-wall take-away outlets
in Mumbai. The vadas are made in a centralised factory in Mumbai, from where they are
put in trucks to various locations.
 Customers of vadapav are anyone from a college-goer to a labourer or the rich who
drive in luxury cars.
 The idea of repackaging the vadapav into a branded product standing tall amidst
burgers, pizzas and fries is the vision of Venkatesh Iyer. The shrewd businessman
brought in operations, supply chain, franchise and funding into the thela and India's
biggest fast food chain was born.
 Goli vadas are manufactured in hands-free high-end technology by the same American
companies that make McDonald's patties.
 When Venkatesh Iyer sold his imagination and shared his ideas, corporates were
impressed and he took the opportunity to rope them in as partners. The result is
hygienic, affordable and avant garde vadas that retain the desi touch and spicy taste.
 As cities grow big and lives become busier, people are on the lookout for quick grabs
and leisure dine-ins are reserved for occasions. Vadapav is a meal in itself and can fit
into your diet at any time of the day – this led Venky to believe in the success of his
idea.
 Mr. Iyer’s business model is to rope in small businessmen with nominal investment. And
that’s how they grew the width of their business.
 Goli has 50 stores in UP alone. Small towns have a huge potential as big cities become
saturated. We are now exploring the depth of the business, trying to establish a
sustained customer experience.
 Mr. Iyer’s mantra to success has been 'plan, do and check'.
 He wrote the 'My journey with Vadapav', that's part of curriculum in many business
schools. “Building and rebuilding is a continuous process in any business. Apart from
keeping a keen eye on the graph of the turnover, I also take time to travel thrice a
month to various cities, meet people and share my story.” – says Mr. Iyer.
 Business institutions like Indian School of Business, International Institute for
Management Development, Switzerland, Harvard and CNBC have done case studies
on Goli.
2.4. Awards & Recognitions

 Golden Spoon Award-Most Admired Food Chain of Indian Origin, by Coca-Cola.

 Travel & Leisure has featured Goli Vada Pav amongst the top 20 QSR in the world.
 India Inc certificate of excellence in recognition of smart innovation.
 6th Largest QSR (quick service restaurant) Brand in India.

6
3. ECONOMICS

3.1. Growth of Indian Fast Food & QSR Market

 Indian fast food market is expected to grow at a CAGR of 18% by 2020 due to changing
consumer behavior and demography.
 Fast food market in India is expected to be worth US$ 27.57 billion by 2020.
 Quick Service Restaurants (QSRs) market in organized fast food sector in India is
projected to grow at a CAGR of 20% by 2019-20.
 About 10% of the fast food market in India is organized. NOVONOUS estimates that the
organized fast food market in India is expected to grow at a CAGR of 27% by 2020.
 Vegetarian fast food constitutes of around 45% of the whole fast food market in India
and is expected to grow at a CAGR of 18% by 2020.
 Fast food Casual dining restaurants (CDRs) market in organized fast food sector in
India is projected to grow at a CAGR of 27% by 2019-20.
 Non casual dining restaurants (NCDR) or fast casual dining restaurants have gained
tremendous market share in the last 10-15 years. Non-Casual dining restaurants
(CDRs) market in organized fast food sector in India is also projected to grow at a
CAGR of 27% in next 5 years.
 Millions of people eat ethnic fast food every-day from pani-puri to vada pav to dosa. To
leverage the growth of ethnic fast food market many players are entering this market in
an organised way.
 Ethnic fast food market in India is projected to grow at a CAGR of 31.95% by 2019-20.
 A study published on 21 November 2017, by the Economic Times India's food
processing sector may attract US$33 billion by about (Rs. 2.14 lakh crore) in
investments 2024.
7
 The food processing sector has the potential to attract USD 33 billion investment and
generate employment of 9 million person days by 2024.
 Given the trade in production of food commodities, the food processing industry in India
is on an assured track of growth and profitability.

3.2. Vada Pav in Mumbai and Politics

 The first man who made it was Ashok Vaidya but the story of vada pav is connected
with the political party Shiv Sena. In 1966, Bal Thackeray asked his Shiv Sainiks to set-
up small businesses. Among his Sainiks, there was one Ashok Vaidya who believed in
Thackeray’s ideology. He started selling batata vada outside Western Railway’s Dadar
Station. And one day, he just tried to put a batata vada between a pav, that he had
borrowed from an omelette stall near-by and served it with a bit of green chilli and red
chutney. That’s how the city got its first vada pav. In 1970, with the help of Shiv Sena,
Vaidya got an official vendor license. Gradually, Vaidya made vada pav the official
snack for all Shiv Sena meetings and rallies.
 The most common theory of the Vada Pav's origin is that it was invented in the erstwhile
mill-heartland of Central Mumbai, then known as "Bombay". The carbohydrate-rich
snack catered to the mill workers of what then known as Girangaon. The combination of
the potato dumpling (batata vada) placed inside a pav quickly became popular in
Girangaon and later the rest of Mumbai.

3.3. How Political interference caused Goli Vada Pav huge losses

 Mr. Venkatesh Iyer noticed the Aarey Milk Booths in Mumbai around 1500 spots across
the city which distributes milk. They selected the 300 best locations of Aarey booths and
used it to promote and sell Goli Vada Pav’s with all permisssions in place.
 They faced a lot of challenges since they launched their product in all 300 locations on
the same day. But this major visibility also brought it to political limelight all of a
sudden.
 Vadapav became a politically sensitive issue with newspaper articles being published.
 Milk Booths selling the vadapav were burnt down which panicked the investors
 Faced unreasonable demands from the Aarey booth operators’ union
 Mr. Iyer had invested around 4 crores in this Aarey project and ended up bearing loss of
the entire amount in a month’s time.
 There were and are many other political challenges and interferences faced by Goli
Vada Pav Pvt. Ltd. in its operations explained well in the book published.

8
3.4. Effect of Potato Prices on the Vada Pav business

 Vada pav may now cost more on the streets of Mumbai as of April since the potato
prices in the city have reportedly gone up by up to 30 per cent in recent days.
 City-dwellers have been shelling out more to buy potatoes off late. While average prices
ranged from
 Rs.18 to Rs.20 for a kilo, it now ranges from Rs.24 to Rs.26. Sellers in major vegetable
markets.
 Higher rates may prevail for most of the year as the supply line is unlikely to firm up.
Suppliers have advised vendors to maintain the rates because their production has
been low. Buyers are not too happy and often argue about the prices. Unfortunately,
potato vendors are unable to explain the market scenario and conditions to them.
 Vendors mostly are resigned to the fact that despite the price rise, they have no option
but to sell and buyers too have no option but to buy.
 Interestingly, in December 2017, potatoes worth crores were being dumped on the
streets in the state of Uttar Pradesh where supply had surpassed demand.
 Farmers at the time had said since they are not getting the minimum cost, and are
unable to pay cold storage charges and hence they have no option but to let potatoes
rot.

9
3.5. Effects of the Changing Society

 There is no doubt that the society is continually changing. The tastes and fashions are a
great example of this change.
 One of the most significant differences is the growing popularity of social media. Social
networking sites like Facebook have become very popular among the younger people.
The young consumers have grown used to mobile phones and computers.
 Online ordering and quick service/delivery is appreciated
 The younger generation prefers to use digital technology to shop online. Older people
will perhaps stick to their traditional methods. The effect of changing society is an often
discussed.
 These changing factors have a toll on businesses too. Changes in the social factors can
impact in many different ways. Hence, going online was the best decision made when
Venky chose to tie up with Food Panda, Swiggy etc.
 All classes of people enjoy vada pav, it is staple food for the poor whereas the middle
class may enjoy it for a quick snack on the go.
 Now that Goli Vadapav has made its mark on the online platform as well, even the rich
have access to the huge variety and tasty Vada pavs delivered to their home.

10
3.6. Importance of Technology

 Goli Vada Pav was nowhere close to reaching its present scale of operations, even two
years after launch. High footfalls at its outlets translated into high sales, but the
operations were fraught with unnecessary wastage of its raw ingredients, which
escalated costs, and a lack of standardization of quality and taste.
 To increase the shelf life of its product, the firm tried various technologies used by dairy
and other perishable-product manufacturers: ultra-violet rays, nitrogen gas chambers,
and even blast-chill refrigeration. But none of these methods produced satisfactory
results.
 Eventually, Goli Vada Pav went to Vista Processed Foods, a subsidiary of the US
company OSI, one of the world's largest food processing corporations, which prepares
burgers for McDonald's. Goli Vada Pav outsourced the manufacturing of the potato
dumpling to OSI's fully automated plant near Mumbai. The plant is certified for hazard
analysis and critical control point, a global standard for food safety, and can prepare
100,000 portions in five hours.
 Every step - slicing, peeling, dicing, packing - was automated. The hygienic conditions
under which Vista made the potato dumplings increased their shelf life from one to 90
days, while at the same time automation cut down on waste. Each finished dumpling
now goes through metal detectors and is X-rayed, ensuring greater standardisation of
the product.
 The gram flour-coated dumplings are packed, sealed in cartons, with manufacturing and
expiry dates clearly stated, and transported in refrigerated trucks to warehouses and
thereafter to franchises, where they are unpacked, deep-fried to order, and served
scalding hot to customers. Each outlet has a single-touch fryer, designed specially for
the company by engineers at the Veermata Jijabai Technological Institute in Mumbai.
 These innovations have given Goli Vada Pav a significant leap over street vendors. A
survey conducted between December 2009 and February last year by Metropolis
Healthcare, a multinational chain of diagnostic centres, found that of 70 random street
food samples it collected from Mumbai, nine out of 10 were contaminated with bacteria
and unfit for human consumption.
 Goli Vada Pav's franchise outlets have grown from 10 in 2004 to nearly 100 this month.
Its turnover rose from 3 million rupees (Dh242,500) in its first year of operation to 150
million rupees last year.
 The chain is planning a massive expansion, to 500 franchise outlets, across India in the
next five years, with a more than tenfold jump in turnover to 1.8 billion rupees.

11
4. MARKETING

4.1. Brand Name and Identity

 Vadapav is something typical of Mumbai and through 'Goli' we have carried the spirit
and flavour of the city all along.
 Goli is a typical Bombaiyya slang that means 'ranting or chatting over something'. It's a
street-culture in Mumbai to have gup-shup over vadapav.
 Also, the un-fried version of the vada is called 'goli' since it's round.
 With a vision to carve out a niche among the likes of burgers and pizzas of the world,
entrepreneur Venkatesh Iyer pioneered Goli Vadapav that is devoted to the humble
vadapav. "I always thought of vadapav as Amitabh Bachchan and wanted to show it to
the rest of the country," said Iyer.
 Iyer was delivering a keynote address at Chitnavis Center, Civil Lines, on Wednesday,
in an effort to encourage young entrepreneurs aspiring to get a foothold in mainstream
markets during an idea-sharing seminar called i-Summit. The programme was jointly
organized by Vidarbha Industries Association and Lemon Ideas.
 The fast food chain has now become a success story which started off as a few stores
present only in urban Mumbai and Pune. Making vadapav a brand, as Iyer puts it, was
the intent behind Goli and has now grown to over 300 stores spanning 100 cities across
22 states since 2004.
 The business model is largely outsourced with aspects pertaining to production and
logistics contracted to international companies. Iyer pointed out that the company which
manufactures burgers for McDonalds is the same that produces the vadas (deep fried
potato cutlet) for Goli.
 According to Iyer, not only has the product been well received at places outside
Maharashtra where vadapav is less common but also in areas where the food is
unheard of. "My business has grown through word of mouth. A customer who loved my
food actually opened a franchise in his hometown at Aurangabad," said Iyer.
 Iyer believed that the public might get bored of eating the same deep fried batter coated
potato cutlet and thought diversifying the food would make the vadapav more desirable.
To make it more appealing to our customers it introduced variants like mixed-veg,
schezwan, corn and cheese into the mix and it paid dividends. His stores also offer
other items like misal and rolls apart from the staple.
 Iyer has also received a number of enquiries from overseas like Dubai and UK about
opening franchises outside India. However, Iyer said there is still time to consider
exporting the brand as there in much work to be done here.

12
4.2. Logo, Colour Mix and Taglines

 The logo is perfect since Iyer wanted it to depict the common man. The round shape
symbolises the actually potato goli and the tagline it totally Bollywood and Govinda style
to suit the feel of Mumbai.
 Also, the color combinations used for the logo as well as menu and promotion posters
has been chosen keeping in mind the below:
 Red and Yellow are the chief food colors, evoking the tastebuds and stimulating the
appetite. Both red and yellow are also effective at grabbing attention.
 The color red can also increase our heart rates, which could be the reason why
countless media reports have said it can jump-start our appetite. But heart rate and
appetite aren't necessarily linked. It's more likely that the color has just become
synonymous with fast food over time, perpetuating the idea that red makes you hungry.
 Green connotes eco-friendliness, healthy (think veggies) but be careful as green can be
also unappetizing. The eco side connection to green has been overdone, and it’s no
longer expected that eco products will actually be colored green since eco has become
more the norm and less the exception.
 White connotes clean and pure, but it can also look stark, plain and sterile—so this is
another color that needs to be exercised with care.
 Black signifies elegant, sleek and high-end. For food packaging however, the color
brown often takes the place of black as a more appetizing color which can still be
portrayed with the same descriptors as black.
 Taglines: Abh Goli Kha!, Vada Pav No. 1

13
4.3. Competition Scanning
 Competitor analysis is the crux of any major marketing plan. The marketers ensure that
they scan the overall market space and research on the growth and innovations of their
competition to stay ahead of the others. Let us look at the top 10 major competition Goli
has to deal with in Mumbai -
1. Kirti College Vada Pav or Ashok Vada Pav Stall
Ashok Thakur guarantees that I make vada pav of the highest quality. This stall also
boasts of a clientele including Shabana Azmi, Madhuri Dixit, Sonu Nigam, Jackie Shroff
and Sushmita Sen, he reveals proudly.
Where: Off Cadel Road, Kirti College Lane, Prabhadevi, Mumbai-400028
2. Graduate Vada Pav
Located outside Byculla station, this small stall has been around for 17 years and is
rarely spotted empty, with 2000 customers flocking to the stall daily
Where: Outside Byculla (West) station, South Mumbai-400008
3. Aaram Vada Pav
The spicy vada pavs served piping hot here have Mumbaikars trailing in all day, with
students in particular swearing by this stall located opposite Mithibai College.
Where: Opposite Mithibai College, Vile Parle West, Mumbai-400056
4. Anand Vada Pav
The spicy vada pavs served piping hot here have Mumbaikars trailing in all day, with
students in particular swearing by this stall located opposite Mithibai College.
Where: Opposite Mithibai College, Vile Parle West, Mumbai-400056
5. Samrat Vada Pav
Chopped coconut pieces added to the batata mix give this vada pav a twist that has
customers coming back for more.
Where: Nehru Road, Parleshwar, Vile Parle East, Mumbai-400057
6. Gajanan Vada Pav
Like Kirti Vada Pav, this stall also sticks to the original vada pav as its only dish, with a
delicious chutney of besan and chillies making it the complete experience.
Where: Vishnu Nagar, Thane
7. Jumbo King Vada Pav
Having sold their 100 millionth one in April, 2014, they have capitalized on the street
food dish like no one else, since their conception in 2001 in the suburbs of Mumbai.
Where:Their 60-odd bustling stores are now located scattered over 12 cities. More
‘vadapower’ to you guys.
8. MM Mithaiwala
It’s hard to keep your eyes on the prize at this shop located near Malad station, but the
vada pav here is extremely famous and its vantage location ensures plenty of footfalls
throughout the day.
Where: MM Mithaiwala, Opposite Railway Station, Malad (W), Mumbai 400064.

14
9. Annapurna Sweets & Farsan
The vada pav here eyes Mini Punjab across the street haughtily, with people coming in
to pack bundles of the dish.
Where: Delux Mahal Building, Opposite Hotel Mini Punjab, Pali Hill, 33rd & 16th Road
Junction, Bandra West, Mumbai
10. Shivaji Vada Pav
Started by a certain Mr. Nainar over three decades ago, this stall – a brand in itself – is
now being run by his son, Anand Nainar.
They have even won awards, presented by Shabana Azmi and Jackie Shroff, in the
past, much to Mr Nainar’s joy.
Where: Outside Mithibai college, Vile Parle West, Mumbai 400056

4.4. Product

 List of available variants in vada pav and other items at their outlets

Classic Vadapav Paneer Supreme Vadapav

Aloo Tikki Vadapav Makka Palak Roll
Mix Veg Vadapav Crunchy Roll
Makkai Palak Vadapav Cuppa Misal Pav
Masala Vadapav Aachari Nuggets
Maharaja Vadapav Sabudana Vada
Cheese Vadapav Cheese Finger
Schezwan Vadapav Choco X-Tacy

15
4.5. Promotions

 Goli Vada Pav has gained a lot of popularity because of their big success story
published in the book ‘My journey with Vada Pav’.

 Online Advertisements

16
 Very Lively and well updated website

 Mr. Venkatesh Iyer also received a lot of publicity by doing interviews and talks about
his journey to success in this business.

17
 Presence on print media

18
 Presence on social media like Facebook, Instagram, LinkedIn etc.

19
 Offering discounts and combo offers products for parties

 Cashback offers

20
 Entrepreneurial Motivation to youngsters in form of seminars
 The passion with which Venky speaks demonstrates how much can be achieved if you
just have true belief in the idea about which you truly passionate. Venky speaks about
his entrepreneurial journey, beliefs, passion and marketing.

4.6. Process
 Below demonstrates the traditional method involved in the making of a Vada pav

21
 Modern methods used in the Process of Goli Vada Pav. The semi-finished materials
like pav and golis (mashed potato filling) are stored in a temperature controlled
multipurpose refrigerator.

 Pav being brushed with butter for additional taste.

 Deep Frying method for the Vada’s

22
 How potato goli’s are made in the centralized Mumbai kitchen for standardization using
US based technology used in McDonalds production as well

23
4.7. Packaging

24
4.8. Place

 Today goli vadapav has approximately 350 stores in 90 cities of 21 states.

 Like Kerala, Tamil Nadu, Haryana, Karnataka, Andhra Pradesh, Telangana,
Maharashtra, Gujarat, Chhattisgarh, Uttar Pradesh, Uttarakhand, Jharkhand, Madhya
Pradesh, Delhi,Chandigarh(U.T), Himachal Pradesh, Punjab, Bihar, Rajasthan, West
Bengal, Odisha.
 The franchise of Goli Vada Pav is providing services in famous and popular cities of
India like Mumbai, Kota, Chennai, Gurgaon, Surat, Vadodara, Ahmedabad, Vapi,
Lucknow, Nagpur, Noida, Bengaluru, Pune, Delhi and 76 other.

25
4.9. Price

 Vada Pav is the most reasonable street food available which is a benefit in this business
 The prices vary depending on the variety offered
 Below is the complete menu along with the variants prices at which it is offered to the
consumer.

26
4.10. USP of Goli Vada Pav

Popular

Economical Hygienic

Goli Vada Pav -

USP

Consistency Mobile food

Quick Service

27
4.11. SWOT Analysis

4.11.1. Strengths
 Standardized goli’s (raw potato before dipping into batter) does not hamper brand
uniformity
 Variety and innovations even in this simple product keeps the customers engaged.
 Improved shelf-life of the Goli’s has made it possible for Goli Vadapav to reach the
customers in the International space as well.
 An eclectic mix of vadapavs (below Rs.50), vada rolls (below Rs.75) and curry pavs
(below Rs.100) are offered at Goli stores.
 Customer feedback is given importance. Keeping in line with customer suggestions,
they have introduced corn and spinach vada in Bangalore, Samosa masala vada in UP,
paneer in Punjab and Sabudana vada at stores in Maharashtra.
 The 5 min rule where 50 vada’s can be deep fried at a time works very well in providing
customers with quick service.
 Goli's important objective is to encourage entrepreneurship and business spirit which
will involves, engages youth.
 Extremely engaging and lively website with job opportunities also highlighted.
 The book launched ‘A journey with vada pav’ will not only act as an excellent promotion
but also will encourage youngsters to come forth and apply for jobs at Goli Vadapav.
 Their product is sustainable due to their strong backup plan of modernized way of
producing patties.
 Launched app for franchisees, which is like a digital academy where they train
personnel on customer service and brand uniformity. On the app, we have designed
syllabus for man, money and product management.

28
4.11.2. Weakness
 Competition from Jumbo King which has its stores outside every railway station in
Mumbai
 Strong competition from other local joints or vada pav stalls
 No presence yet in the western suburbs of Mumbai
 Every franchise owner has their own way of functioning
 At the start faced, Pilfering of the Goli’s by franchise owners
 Standardization of taste and quality changed as per chef, this weakness was also faced
earlier
 Gathering funds and loans continuously for consistent business operations

4.11.3. Opportunities
 When Venkatesh Iyer co-founded Goli VadaPav with Shiv menon in 2004, he saw big
opportunity in selling affordable, clean, ethnic fast food to lower-income customers in
India.
 Mr. Venkatesh now CEO, saw a potential Market of 500 million, mostly teenage and
young adult Indians paying Rs. 10 (about 20 US cents) or more to eat a vada pav, a
typical Mumbai Street food dish of a spicy vegetable patty in a bun.
 Counting on big social changes under way in India, including longer commutes for
lower-middle class Indians who “don’t have so much time for food” now-a-days due to
their tight schedules.
 Goli Vada Pav would occupy a potentially lucrative spot between traditional street food
vendors and global chains. The goal was to sell hygienically prepared food with an
authentic touch.
 Goli has 50 stores in UP alone. Small towns have a huge potential as big cities become
saturated. We are now exploring the depth of the business, trying to establish a
sustained customer experience.

4.11.4. Challenges
 Initial challenges were faced while ideating the concept of an Indian burger
 Next came the challenge of raising capital for this start up
 The company opened its first outlet in 2004 in Kalyan, near Mumbai, but soon ran into
problems.
 The kitchen area that they had rented faced a legal notice and that’s when they realized
that their so called Landlord is does not exactly own the place and they have been
cheated into running their kitchen in an illegal room.
 The water supply, electricity and gas line was cut and they had very less time to search
for a new place to build their kitchen
 There were workers whose wages were affected
 The handmade patties Varied in quality and had a short shelf life, some were also
pilfered by the franchise owners
 Steep rises in material costs put margins in pressure

29
 In Nov 2006, Mr. Venkatesh’s bank gave the company 10 days to stop the losses
resulting from these problems or repay the bank’s loan.
 The company opened its first outlet in 2004 in Kalyan, near Mumbai, but soon
 ran into problems. The handmade patties varied in quality and had a short shelf life, and
some were pilfered. Also, steep rises in raw material costs put margins under pressure.
 In November 2006 Mr Venkatesh’s bank gave the company 10 days to stop the losses
resulting from these problems or repay the bank’s loan.
 Running a business on a scale as large as Iyer's does come with challenges, he said.
Maintaining a consistent service quality in every outlet is something Goli is proud of
now. However, there is much effort being put in to perfect the service by the
organization.
 There are many areas within the entire operation that the company is still working on,
said Iyer. Their concentrating a lot on logistics and production as demand for our
product is steadily increasing.

4.12. Strategy

 The response from Mr. Venkatesh was to focus on the Goli Vada pav brand and
outsource much of the supply chain and operations.
 He approached a friend who was the CEO of Vista Processed Foods, a subsidiary of
OSI, a US company that supplied frozen vegetable and chicken patties to McDonald’s in
India. Vista agreed to supply frozen patties to Goli Vadapav , which addressed the
problem of inconsistent quality and short shelf life.
 Another friend put Mr. Venkatesh in touch with an engineering college in Mumbai, which
improved consistency by helping to install automated fryer machines in the outlets.

30
5. INNOVATION

 Goli Vada Pav corporate office situated in Vikhroli in Mumbai has a special department
for Innovations
 They come up with an innovative item on their menu every quarter
 This keeps the customers engaged and looking up to exciting flavours and tastes
 They release 4 new innovative variations in the menu every year
 Simultaneously also look into phasing out innovations / products in the menu that are
not doing so well in the market
 They have set the bench mark with bringing consistency into a street food business
 Also, innovating through technology by using the same technology used by McDonalds
for their burger patties for their goli’s or potato patty pre-frying.
 Vista foods has helped in outsourcing this technology to Goli Vada Pav.
 Innovation is seen in the way stores has been set up in the major cities of India, this
helps to deal with competition from Jumbo King etc. who have their presence majorly in
Mumbai. Whereas, Goli Vada Pav focuses in opening stores all over India.
 It has also been getting franchise requests from countries like Dubai, USA and UK
 Their target is to achieve overall presence in India before considering to open up abroad

31
6. COST AND MANAGEMENT ACCOUNTING

 Product cost sheet prepared below for Goli Vada Pav. Costs mentioned below are
assumed and not factual for lack of genuine data.

Cost Sheet of Vada Pav

Units: 100.00

Particulars Total Cost Cost per Unit

Direct Material: (A) 1,200.00 12.00

Golis 400.00
Pav 250.00
Batter 150.00
Oil 75.00
Gas 25.00
Sauce 150.00
Chutney 100.00
Wrapper 50.00

Direct Labor: (B) 100.00 1.00

Frying 50.00
Assembling 50.00

Direct Expenses: (C ) 150.00 1.50

Transportation 100.00
Handling 50.00

Prime Cost (A+B+C) 1,450.00 14.50

Overheads: 200.00 2.00

Electricity 25.00
Rent 50.00
Salary 100.00
Water 25.00

Cost of Production 1,650.00 16.50

Selling & Distribution 150.00 1.50

Total Cost 1,800.00 18.00

32
7. INFORMATION TECHNOLOGY

 Below is an example of how consumer ratings on different digital platforms can be

tracked and recorded in the form of MIS

0
Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18

Website Zomato UberEats Swiggy Food Panda

 Other examples of data that must be recorded in MIS could be –

1. To track daily wastage experienced per store
2. To track consumer buying pattern of each and every product per store
3. To see the increase in sales after any promotion event or activity
4. To understand the foot fall of the customers per store in order to track every stores
performance and take remedial measures before it is too late
5. To also predict the future requirement and expansion of Goli Vada Pav

 Dashboard example –
A detailed dashboard can be published quarterly with the consumer feedback collected
through websites and store as well ratings on sites like Swiggy, Food Panda, UberEats
etc. to continuously monitor the results of the company.

33
8. HUMAN RESOURCES

 Strength of employees in the corporate arena: Almost 80 employees

 Overall strength across all stores and workers in the kitchen, boys on the delivery front
etc.: 300 employees
 Salary review: Fairly good pay masters
 Glassdoor reviews:

GOLI VADA PAV AS A WORKPLACE

PROS CONS
Top Management- very nice and humble, Company is in baby stage, so a bit slow
show trust and belief in their employees in acting or executing
Good work life balance -

 Performance Management: Monthly discussions with management to keep track, Mid-

year review and yearly appraisal system
 Job role: The role of employees working in the Franchise Toll department is unique. As
described, they are the connect between the franchisees and Goli Vada Pav Pvt. Ltd.
Their role consists of Onboarding and hand holding the new franchisees and briefing
them with the SOP’s (Standard operating procedures) of all the processes involved.
 Motivation to stores and workers at the stores: Incentives provided to the store based
on the targets achieved which is then equally distributed amongst the workers.
 The percentage of incentive varies based on different factors like – was the target
based on a new product or the existing ones, revenue generated by the store etc.
 Rewards and recognition: Awards like ‘Employee of the month’ as appreciation.
 Employee Engagement – Small knit team working together encourages bonding.
Every employees’ Birthday and happy life events are celebrated.
 A trustworthy atmosphere is created at work to empower the employees to feel a sense
of ownership which motivates them to take sincere efforts.
 Training and development also takes place for different roles within the company as well
in the kitchen and shop floor.
 Recruitment is purely need basis and follows the standard procedure of hiring.
 The exit interviews taken during the offboarding process is what helps Goli Vada Pav to
formulate the retention techniques and learn what not to do and what could be done.

34
8.1. Organization chart

CEO and Founder

(Mr. Venkatesh Iyer)

Human
Sales Marketing Project Finance
Resources

Regional Business Graphics Project

Heads Development Head Executives

Cluster Hub Business

Development Brand Head
Managers Managers
Executives

Store
Franchisee Toll Digital Head
Managers

Store Boys

 The company is headed primarily by Mr. Venkatesh Iyer along with his friend and
partner Mr. Shivadas Menon.
 There are various departments directly reporting to the CEO
 We notice that the sales department is a vast branch
 Whereas, marketing department has a very flat hierarchy with 4/5 people heading roles
like Branding, Digitalization, Graphics etc.
 Business Development and Franchisee Toll managers who are the connecting link of
Goli and the franchisees. They help onboard and accustomize the franchisees to the
systems and operating procedures of Goli like the standard temperatures etc. to
maintain consistency and quality of the product.

35
9. PROCESS AND OPERATIONS

 Hub and Spoke Model is followed for distribution of the centrally prepared Goli or raw
potato patty.
 These goli’s produced by Vista Foods for Goli Vada Pav have a shelf life of 9 months
and is distributed to all the stores across India.
 They have 12 major distribution centers which are strategically positioned to cover all
the stores in the country.
 Later, raw product is supplied to all the stores within that stores perview by road through
vans.

Stores Stores

Ahmedabad
Stores Stores

Chennai Bengaluru
Stores Stores

Mumbai

Lucknow Haryana

Stores Stores
Nagpur

Stores Stores

36
 10. TAX

 Taxes applied are as per the standard government norms.

 CGST and SGCST is charged. Bill structure with taxes levied can be seen in the picture
below:

11. LEGAL OBLIGATIONS

There are several mandatory licenses that one must obtain to start a food business in India.
Goli Vadapav also has all the necessary licenses required as listed below:

 Food license – Food Safety and Standards Authority of India.

 Every food business operator shall get its business registered or obtain a Food License
The basic motive is to assure the safety. The below are the categories in which license
are divided based on the turnover limits:
 Basic registration: Turnover up to 12 Lakhs
 State License: Turnover up to 20 crores and
 Central License: Turnover more than 20 crores. (Goli has a central food license)

37
 Failure of registration may levy heavy penalties and treated as a legal offense. The
license is issued 1 year to 5-year validity.
 Trade License - Government has prescribed certain minimum requirements for
obtaining online in various states and cities. Some of the general conditions are as
follow:
 The individual applying for license must be atleast 18 years of age.
 The activities in which the business is going to get engaged shall be legal.
 The applicant shall be of clean image and shall be free from any criminal background.
 Fire Department NOC - The premises of a food business should have a proper
arrangement of fire security. The owner has to obtain NOC from the fire department by
filing an application to the Authority. The Authority after conducting inspection and
satisfaction on safety arrangement grant the NOC from Fire Department.
 Environmental Clearance - Food business shall have to ensure that their activities are
not involved in violating pollution norms by obtaining a NOC from the pollution board of
the city/state.
 Insurance policy - The FBO has to take insurance for public liability, Product liability,
fire policy & for building & Asset. Insurance policies can be obtained from any insurance
company providing such insurance.
 GST Registration - A food business crosses the threshold limit mentioned than 20 lac
has to register its business under GST act. Restaurant voluntarily also can get register
under Goods and Service Tax to enjoy the benefits of credits. GST Registration can be
completed within 7 working days.
 Trademark Registration of Food Business - Trademark is a unique identity
registration. Trademark creates brand image among customers. In case owner wants to
start opening a chain or of its food business than trademark helps to grow faster.
Trademark registration would provide ownership over the intellectual property created
and help deter the use of the branding by competitors.
 Returns required to file by FBO (Food Business Operators) - Every food
manufacturer, labelers, re-labelers, packers, re-packers and importers are required to
file an annual return either electronically or in physical form as may be prescribed by the
concerned Food Safety Commissioner, in Form D-1, on or before 31st May of each year
to the Licensing Authority with respect to the category of food products sold /
manufactured by him during the previous financial year.
 All FBO’s should note that a separate return is required to be filed for every license
issued under the Regulations, irrespective of whether the same Food Business
Operator holds more than one license.
 Delay or non-filing of returns may levy penalty on FBO.

38
 12. STATISTICS

 When you have a list of values repeated for a given situation or criteria, Mean, Median
and Mode help to derive an average, middle or frequent value, respectively.
 In the example demonstrated below, the manager of the business is able to find out the
quantity that he needs to produce on a daily basis, so that there are no leftovers.

Past Month's sales

Day 1 75,000.00 65,000.00

Day 2 65,000.00 66,000.00
Day 3 72,000.00 67,000.00
Day 4 78,000.00 68,000.00
Day 5 81,000.00 69,000.00
Day 6 84,000.00 70,000.00
Day 7 90,000.00 71,000.00
Day 8 93,000.00 72,000.00
Day 9 95,000.00 73,000.00
Day 10 100,000.00 74,000.00
Day 11 95,000.00 75,000.00
Day 12 95,000.00 76,000.00
Day 13 98,000.00 78,000.00
Day 14 92,000.00 79,000.00
Day 15 95,000.00 80,000.00
31 days, so 16
Day 16 88,000.00 is the middle 81,000.00 Median
point
Day 17 79,000.00 84,000.00
Day 18 76,000.00 87,000.00
Day 19 73,000.00 88,000.00
Day 20 74,000.00 89,000.00
Day 21 71,000.00 90,000.00
Day 22 68,000.00 92,000.00
Day 23 70,000.00 93,000.00
Day 24 66,000.00 95,000.00
Day 25 67,000.00 95,000.00
Mode
Day 26 69,000.00 95,000.00
Day 27 87,000.00 95,000.00
Day 28 80,000.00 95,000.00
Day 29 95,000.00 98,000.00
Day 30 89,000.00 99,000.00
Day 31 99,000.00 100,000.00

39
Mean or Average 82,548.39
Median 81,000.00
Mode 95,000.00

 From the above data, one could decide to produce 82,548, 81,000 or 95,000 of Vada
Pavs each day for the future.

13. FINANCE

 GOLI VADA PAV PRIVATE LIMITED with CIN U15130MH2003PTC143785, is a 14.11

Years old, Private UnListed Indian Non-Government Company, registered at MUMBAI
CITY (Maharashtra), with a paid up capital of ₹2.54 Cr. As per MCA and other Industry
classification records, the main line of business is Manufacture of Food Products And
Beverages. The status of GOLI VADA PAV PRIVATE LIMITED, as on date is Active.
Company has filed its Annual Returns and/or Financial Statements upto 31-03-2017 i.e.
FY 2016-2017.
 It is a Non-govt company with an Authorized Capital of ₹ 10,50,00,000 (Ten Crore And
Fifty Lakh Indian Rupees) and Paid Up Capital of ₹ 2,54,40,315 (Two Crore, Fiftyfour
Lakh, Forty Thousand, Three Hundred And Fifteen Indian Rupees).
 There are 5 Directors associated with Goli Vada Pav Private Limited. They are:
Srinivasan Venkatesh Gurumurthy Srinivasan Iyer, Karuvappadanna
Ananthanarayanan Srinivasan, Yogesh Dahyalal Korani, Lakshmanan Nataraj Kalpathy
and Asha Venkatesh.The website of the company is www.golivadapav.com. As per
MCA records, company is registered at GALA 107;108 PLOT NO.2; A WING; KAILASH
INDL COMPLEX; PARKSITE; VIKHROLI (WEST) MUMBAI Mumbai City MH 400079.
 Their borrowing details are as below:

40
 THANK YOU NOTE

 Thank you to our Dean - Prof. Pradeep Pendse for giving us the opportunity to make a
creative project like this.
 Also, to Mr. Brijesh Kumar Singh, the National Head of Strategy & Marketing
departments of Goli Vada Pav for spending his quality time to give me an in-depth
understanding of the business.
 Business Card furnished below:

41
 BIBLIOGRAPHY

1. http://www.businessdictionary.com/definition/business.html
2. https://www.prnewswire.com/news-releases/india-fast-food-market-report-2015---2020-
market-is-expected-to-grow-at-a-cagr-of-18-505221141.html
3. https://www.ft.com/content/ce990f92-f2b1-11e1-86e0-00144feabdc0
4. https://economictimes.indiatimes.com/industry/cons-products/food/indias-food-
processing-sector-may-attract-33-billion-by-2024-study/articleshow/61737009.cms
5. https://www.quora.com/What-is-the-average-profit-of-a-Goli-vada-pav-franchisee
6. https://www.thehindubusinessline.com/companies/goli-vada-pav-to-raise-100-
crore/article8366428.ece
7. http://zeenews.india.com/mumbai/ready-to-pay-more-for-vada-pav-potato-prices-in-
mumbai-soar-2096353.html
8. https://www.golivadapav.com/
9. https://www.youtube.com/watch?v=rKN20iAMAX4
10. https://www.youtube.com/watch?v=OrPVsVLhhEw
11. https://www.indiabizlist.com/business/goli-vada-pav-location/
12. https://www.glassdoor.co.in/Reviews/Goli-Vada-Pav-Reviews-E803992.htm
13. https://www.instafinancials.com/company/goli-vada-pav-private-
limited/U15130MH2003PTC143785

42