The distribution centers focused all their resources to meet McDonald's expectation of
cold, clean, and on-time delivery and played a vital role in maintaining the integrity of the
products throughout the entire 'cold chain'. Ranging from liquid products coming from
Punjab to lettuce from Pune, the distribution center received items from different parts of
the country. These items were stored in rooms with different temperature zones and were
finally dispatched to the McDonald's restaurants on the basis of their requirements.
McDonald’s introduced Foodland to F. J. Walkers of Australia, which resulted in an
affiliation between the two companies to develop the distribution set-up in India.
Buns were sourced from from Cremica in Phillaur, Punjab and Mrs. Bector and Sons in
Khopoli, Maharashtra. Cremica Industries worked with one of McDonald's suppliers from
Europe to develop technology and expertise, which allowed Cremica to expand its
businesses from baking to also providing breading and batters to McDonald's India and
other companies. Sauce came from Bector Foods in Phillaur, Punjab and Hindustan Lever
Limited-Best Foods Division in Thane, Maharashtraxxxi.
Potato Farming in Gujarat
In 1991, McDonald's looked for a particular variety of potato to make its French fries. One
of McDonald’s suppliers, Lamb Weston, invested heavily in setting up production lines to
process these potatoes and make the fries. However, the production was discontinued, as
the right quality of potatoes could not be sourced.
The variety of potato required by McDonald’s had to have a certain length, high solids
content and low moisture content while the ones that were available were of the tablegrade
variety. Nonetheless, as per its initial commitment to local sourcing, McDonald's and
its supplier partner, McCain Foods Pvt. Ltd. (the world’s largest French fries company),
worked closely with farmers in Gujarat and Maharashtra to develop process-grade potato
varieties. Gujarat potato crop was utilized to make McDonald’s ‘Chatpatey’ Potato
Wedgesxxxii.
McDonald's broke even on operations around December 2003 and expanded to 80 outlets
that same year, concentrating on cities where their cold chain facilities had reached. They
had ambitious plans for growth in various cities and also on national highways. With the
Golden Quadrilateral Highway Project connecting four corners of India nearing completion,
highway traffic was expected to increase multifold. This created new business opportunities
for marketers who were keen on tapping travelers on the highways.
Growth Plans
In 2006, McDonald’s celebrated its tenth anniversary in India. McDonald’s India planned to
invest Rs.300 crores- 400 crores (US$ 75 Million - US$ 100 Million) in the next three years
to add 100-125 restaurants in the country as against the then existing number of 94xxxiii.
The distribution centers focused all their resources to meet McDonald's expectation of
cold, clean, and on-time delivery and played a vital role in maintaining the integrity of the
products throughout the entire 'cold chain'. Ranging from liquid products coming from
Punjab to lettuce from Pune, the distribution center received items from different parts of
the country. These items were stored in rooms with different temperature zones and were
finally dispatched to the McDonald's restaurants on the basis of their requirements.
McDonald’s introduced Foodland to F. J. Walkers of Australia, which resulted in an
affiliation between the two companies to develop the distribution set-up in India.
Buns were sourced from from Cremica in Phillaur, Punjab and Mrs. Bector and Sons in
Khopoli, Maharashtra. Cremica Industries worked with one of McDonald's suppliers from
Europe to develop technology and expertise, which allowed Cremica to expand its
businesses from baking to also providing breading and batters to McDonald's India and
other companies. Sauce came from Bector Foods in Phillaur, Punjab and Hindustan Lever
Limited-Best Foods Division in Thane, Maharashtraxxxi.
Potato Farming in Gujarat
In 1991, McDonald's looked for a particular variety of potato to make its French fries. One
of McDonald’s suppliers, Lamb Weston, invested heavily in setting up production lines to
process these potatoes and make the fries. However, the production was discontinued, as
the right quality of potatoes could not be sourced.
The variety of potato required by McDonald’s had to have a certain length, high solids
content and low moisture content while the ones that were available were of the tablegrade
variety. Nonetheless, as per its initial commitment to local sourcing, McDonald's and
its supplier partner, McCain Foods Pvt. Ltd. (the world’s largest French fries company),
worked closely with farmers in Gujarat and Maharashtra to develop process-grade potato
varieties. Gujarat potato crop was utilized to make McDonald’s ‘Chatpatey’ Potato
Wedgesxxxii.
McDonald's broke even on operations around December 2003 and expanded to 80 outlets
that same year, concentrating on cities where their cold chain facilities had reached. They
had ambitious plans for growth in various cities and also on national highways. With the
Golden Quadrilateral Highway Project connecting four corners of India nearing completion,
highway traffic was expected to increase multifold. This created new business opportunities
for marketers who were keen on tapping travelers on the highways.
Growth Plans
In 2006, McDonald’s celebrated its tenth anniversary in India. McDonald’s India planned to
invest Rs.300 crores- 400 crores (US$ 75 Million - US$ 100 Million) in the next three years
to add 100-125 restaurants in the country as against the then existing number of 94xxxiii.
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