c




Kentucky Fried Chicken's (KFC) business operations in India : KFC entered India in 1995 and
has been in midst of controversies since then. The regulatory authorities found that KFC's
chickens did not adhere to the Prevention of Food Adulteration Act, 1954. Chickens
contained nearly three times more monosodium glutamate (popularly known as MSG, a
flavor enhancing ingredient) as allowed by the Act. Since the late 1990s, KFC faced severe
protests by People for Ethical Treatment of Animals (PETA), an animal rights protection
organization. PETA accused KFC of cruelty towards chickens and released a video tape
showing the ill-treatment of birds in KFC's poultry farms. However, undeterred by the
protests by PETA and other animal rights organizations, KFC planned a massive expansion
program in India

From the very first day of opening its restaurant, KFC faced problems in the form of protests
by angry farmers led by the Karnataka Rajya Ryota Sangha (KRRS).The farmers leader,
Nanjundaswamy, who led these protests, vehemently condemned KFC's entry into India,
saying that it was unethical to promote highly processed 'junk food' in a poor country like
India with severe malnutrition problems. Nanjundaswamy expressed concern that the
growing number of foreign fast food chains would deplete India's livestock, which would
adversely affect its agriculture and the environment. He argued that non-vegetarian fast-
food restaurants like KFC would encourage Indian farmers to shift from production of basic
crops to more lucrative varieties like animal feed and meat, leaving poorer sections of
society with no affordable food. KRRS held a convention on November 01, 1995 to protest
the entry of fast food multinationals and the

By late 2003, PETA further intensified its campaign against the cruel treatment meted out to
chickens by KFC through protests at regular intervals. Celebrities like Anoushka Shankar,
daughter of the legendary sitar maestro Ravi Shankar, directly supported the cause of PETA.

Feeling positive about the flourishing malls in all big cities, Keswani revealed that this time
KFC planned to have a presence in prime locations or in a mall where turnout would be
assured. The company aimed at targeting cosmopolitan cities like Chandigarh, Pune,
Kolkata, Chennai and Hyderabad, where mall culture was fast developing.
PepsiCo also decided to concentrate on the expansion of KFC since its other brand, "Pizza
Hut", had successfully established a strong foothold in India.

Issues
c [nderstand the significance of cultural, economic, regulatory and ecological issues
while establishing business in a foreign country
c Appreciate the need for protecting animal rights in developed and developing
countries like India
c [nderstand the importance of ethics in doing business
c Examine the reasons for protests of PETA
c Identify solutions for KFC's problems in India
On August 20, 2003, a five -foot tall chicken complete with an ensemble of feathers and beak
hobbled on a pair of crutches outside Kentucky Fried Chicken's (KFC) Indian outlet in
Bangalore.

The chicken was brought by PETA (People for Ethical Treatment of Animals) activists, who
carried placards reading, "Quit India" and "Stop Playing Fowl" (a pun on "Foul"). The chicken
was placed at the centre and a peaceful protest was held against the alleged ill treatment of
birds in KFC's poultry farms. Media persons were called to give the demonstration a wide
coverage.

The report would also include the following details:

·c Conflicts in India
ñc MSG content
ñc PETA
åc Celebrity Support
ñc Opposition to foreign entry
·c International Conflicts
·c Responding to the Situation ʹ KFC
·c KFC could have done more?