Steelbird aims to become Rs 5,000-crore company in the next 3 years
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Steelbird aims to become Rs 5,000-crore company in the next 3 years

Despite the awareness, majority of Indians think about helmets at the time of mishaps. What do you feel about the industry?

Today, the helmet industry is a small industry in India. Even though the courts and governments have made it mandatory for two-wheeler riders to wear helmets, it has not been enforced strictly. There are only three cities in India today, where it is strictly enforced – New Delhi, Jaipur and Chandigarh. It is mandatory for other states and cities too, but enforcing the same is not that effective. When things are not mandatory, we cannot expect people to fall in line. If it is made mandatory and strictly enforced, then it will take this industry to a different level. For instance, at present the Indian market size for helmets is around Rs 10 million per annum. If helmet wearing is strictly enforced, the demand will easily go 10 times more and touch the Rs 100-million mark. To get that kind of capacity, the industry needs an investment of Rs 3,000 crore. As it is a volumetric industry, lots of technology and space are needed. Helmet manufacturing is a very labour intensive too, say to produce 1,000 helmets a day, you required 100 man power. The helmet industry in coming years will generate a job for minimum 50,000 direct man powers plus indirect man power too.

For this, we are already educating people through various modes, including videos. But, we cannot spend too much on the public awareness part. Only the government can do this. Unless the government strictly enforces this, the public will not care, even though it is their precious life that we all are concerned about. These days almost all OEMs have started providing helmets through their sales channel, and according to Steelbird, this will help quality helmets to automatically reach to a wider audience.

You are talking about the quality as a priority. Off late we have seen several lives being lost despite the rider was wearing a helmet. Why is it so?

Almost 85 per cent of ISI marked helmets sold in India today are fake. People are selling ISI marked helmets for Rs 105 and these are full-faced helmets with visor. More than 207 ISI registered helmet are manufacturers in India. More than 100 companies are operating in a 20x20 room or a 40x40 room. They do not have moulds, machines or equipment that are required to make quality products. If I have to fight against them, I have to wage a lone battle. And I am surprised; the authorities are not acting against them. On the other, the riders should also realize that helmets from an established company like Steelbird costs Rs 900. Then how can you rely on helmets sold for Rs 200-300 for safety. It is like buying spurious drugs and medicine.

If one gets a heart attack and what he buys is a spurious medicine, then naturally the patient will die. In fact, at the time of mishap, the fake helmet breaks and pierces the head, and thereby causing the death of the rider more than due to falling. I feel, some of these riders would have been alive, had they not worn a helmet at all. A good quality helmet costs just about Rs 1,000 and can serve for 10 years, if maintained well. Our governments need to act on this, and should come down heavily on dubious manufacturers. But, till now helmet is not in mandatory list of ISI markings. While other electrical appliances such as pressure cookers and gas burners are in the mandatory ISI list, but a life saving device like helmet is not in that list. The government is spending a huge amount on infrastructure to save lives of human being by making subways, footpaths, over-bridges, zebra crossing, lightings on roads, etc. The government can save many human lives by just making helmet law enforced and that will save millions of lives without any investment from the governments’ part. Most important is that the government must enforce helmet law district wise, and if they will start it now in the coming five years, the government will be able to enforce this law all over India.  

Tell us about Steelbird's manufacturing capacities for helmets and the markets you tap?

We have three plants for manufacturing helmets and all the three are located in Himachal Pradesh. While the first plant has a capacity to make 9,000 helmets per day, the second one has a capacity for 6,000 units per day, and the third plant, which was set up recently, also has a capacity to make 6,000 units per day. So, we have a built-up capacity to make 21,000 helmets a day. But, we are not manufacturing that many currently, rather keeping our capacities ready for the market to grow. We are bullish that the market demand will touch Rs 100 million per annum, and this will happen only when the helmet wearing is made mandatory and enforced strictly in India. If that happens, the country will also be facing a huge shortfall in manufacturing capacity and fresh investments required too will be huge. For instance, through our third plant, we are investing Rs 30 crore for the 6,000 units per day capacity. Anticipating the future requirements, we are also planning to set up a fourth plant with a capacity to roll out 60,000 helmets per day with an investment of around Rs 250 crore. We are planning that plant in Rajasthan and we have just started looking at a few sites in that state and will be firming up plans in the coming months.

In addition to helmets, we also produce components of helmets like buckles, visors, chin straps and interiors, and we supply these to all leading helmet brands around the globe. Our supplies reach to customers in around 50 countries. We also export helmets, but have reduced the numbers off late. Helmet is a complicated product to make and different markets have different standards. Like in India, one has to follow Indian standards, and for Europe, there is European standard and the American market has its own standard. If one has to cater to all these markets, then the investment goes up five times as we need to invest in different moulds and allied manufacturing capabilities. To rollout a new type of helmet, it takes at least two years from design to final production. There are a lot of complications and hence it reduces the focus on exports. However, we continue to export to the markets like Africa, Nepal and Sri Lanka in small quantities.

At the same time, we are scaling up our component exports, while retaining our focus on the Indian market, where we are the leading player in the country with a market share of around 30 per cent in terms of sales by organized players. The unorganised players will be selling seven times more than the organized segment in India now.

How big is the overseas opportunity for India-made helmets?

There is a huge opportunity for exporting helmets. There are numerous types of helmets to cater to and not just for two-wheeler riders. There are helmets for industrial workers, construction labourers, cricketers, horse riders, fire fighters and those for army and police personnel and scores of other categories. But, helmet is an artistic product and needs a lot of passion to make them. That’s why it is an entrepreneur driven industry globally, because it needs passion. Passion to make and passion to sell. We are focusing on the horse riders segment for the export market now and for the automobile segment in India. We are also into the riding gears segment, which is an emerging market in India, and plan to rollout a retail action plan soon. We can do more and cater to the vast global opportunity. But for that we need large resources and the right manpower. If we get that both, we can easily become Rs 5,000-crore company in three years. With our present focus and resources, we will be generating revenue of Rs 500 crore from helmets, and Rs 200 crore from allied businesses that include riding gears, entertainment and motorsports, by 2019.

 

 
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Subway India's Rapid Expansion: 100 New Stores in 2024 and a Bold Vision for the Future
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Subway India's Rapid Expansion: 100 New Stores in 2024 and a Bold Vision for the Future
 

Subway, the global leader in freshly made, customizable sandwiches, has achieved a significant milestone in India by opening 100 new stores in 2024. This expansion underscores the brand’s rapid growth trajectory in one of its fastest-growing international markets. With a renewed focus on modernization, localization, and customer-centric innovations, the brand is strengthening its position in India’s highly competitive Quick Service Restaurant (QSR) industry.

A Landmark Achievement in India's Growth Journey

India’s dynamic and evolving food industry has presented a lucrative opportunity for Subway to expand its footprint. With the opening of its 100th store in Lokhandwala, Mumbai, Subway now boasts a formidable presence of over 900 stores in more than 160 cities across India.

“Reaching this milestone of 100 new stores in a year is a testament to our customers’ trust in the Subway brand. This marks a significant chapter in Subway India’s growth journey, reflecting our unwavering commitment to delivering fresh, high-quality, and made-to-order sandwiches to our discerning customers,” said Tarun Bhasin, CEO of Culinary Brands, the exclusive master franchisee for Subway in India, Bangladesh, Sri Lanka, and other countries.

The brand’s aggressive expansion in 2024 is driven by the increasing consumer demand for freshly made, healthy, and convenient food options. As lifestyles change and urbanization accelerates, Subway is strategically positioning itself as a preferred choice among India’s young and working population.

Strategies Driving Rapid Expansion

The remarkable success of Subway’s expansion in India can be attributed to multiple key strategies:

  1. Leveraging Market Trends: Consumers today are more health-conscious and seek fresh, nutritious, and made-to-order food. Subway’s offering of fresh ingredients and customization aligns perfectly with this trend.
  2. Penetrating Tier II and III Cities: Recognizing the potential of India’s smaller cities, Subway has expanded beyond metropolitan areas. “Our innovation team closely follows local and international trends to offer an exciting menu to consumers. Our current menu already features multiple localized options, such as Paneer Tikka and Tandoori Chicken, which are very popular as they offer familiar tastes while maintaining Subway’s global sandwich-making approach,” Bhasin stated.
  3. Modernized Store Design: To enhance customer experience, Subway has introduced a refreshed store design that is more inviting, convenient, and modern. The response from customers has been overwhelmingly positive. “The new look aligns with what today’s new-age consumers seek – a smart and inviting ambiance that reinforces the freshness associated with Subway,” added Bhasin.

Subway’s Focus on Tier II and III Markets

While Tier I cities remain key markets, Subway is aggressively expanding into smaller cities to tap into their growing disposable income and rising demand for global QSR brands. Establishing outlets in high-footfall locations such as malls, airports, and highways ensures greater brand visibility and accessibility.

“At Subway, we recognize that every market has unique preferences and challenges. That’s why our menu innovation team continuously researches and adapts offerings to suit regional tastes while maintaining our global standards,” Bhasin explained.

Menu Innovations Catering to Evolving Preferences

The brand has also introduced new product lines to cater to India’s evolving taste preferences. Recent additions include the Hot & Cheesy Signature Subs and Breakfast Specials.

“Consumers love our Hot and Cheesy Signature Subs. They are the perfect indulgence during winters, offering 1.5x filling, extra cheese, and served piping hot. Options include Cheesy Paneer Tikka, Mexican, American Barbecue, Chicken Tikka, and Lamb Pepperoni,” said Bhasin.

Subway’s Breakfast Specials are another hit, offering fresh, made-to-order sandwiches that cater to professionals and early risers. “It’s a perfect fit for morning meals, and customers can walk in or order online in metros and mini-metros to relish these sandwiches, best paired with hot coffee,” he added.

Technology-Driven Growth and Customer Engagement

Subway is harnessing technology to enhance customer experience, streamline operations, and support its rapid expansion. Key tech initiatives include:

  • Customer Engagement: Tools like Net Promoter Score (NPS), Online Reputation Management (ORM), and Customer Relationship Management (CRM) are used to interact with customers and gather insights.
  • Retail Expansion Support: Specialized technology tools aid in identifying potential store locations, ensuring efficient supply chain management, and optimizing operations.
  • Digital Transformation: Enhanced online ordering, loyalty programs, and AI-driven recommendations are being integrated to provide seamless customer experiences.

“Technology has been an anchor for multiple departments at Subway. Various specialized tech tools are leveraged to support retail expansion and drive decision-making in the supply chain, quality, and operations,” Bhasin noted.

The Road Ahead: Making Subway India’s Largest QSR Chain

Looking forward, Subway has set an ambitious goal of becoming India’s largest QSR chain over the next decade. This vision is built on key pillars:

  1. Fresh, Customizable Offerings: Subway remains committed to delivering high-quality, made-to-order food that aligns with consumer health trends.
  2. Localized Menu Innovation: Expanding its menu to include more regional flavors and healthier options will be central to sustaining growth.
  3. Wider Retail Presence: Strengthening its footprint in metros and Tier II and III cities will ensure greater accessibility.
  4. Digital and Technological Integration: Embracing digital platforms for seamless ordering, loyalty programs, and data-driven decision-making will be critical to scaling operations.
  5. Overcoming Challenges: While competition, supply chain complexities, and shifting consumer preferences pose challenges, Subway’s strategic focus and adaptability will be key to its continued success.

“We recognize that achieving our goal requires strategic planning and agility. However, our unwavering commitment to fresh, high-quality food and a robust expansion plan will drive Subway’s growth and success in India,” Bhasin concluded.

 

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