HSB Research Review Vol. 3 No.

1 January-June 2012

CASE STUDY
GOLI - MAKING OF A
CROREPATI BY SELLING
VADA PAV
ABSTRACT
Mr. Deepak Sharma
The case is written on the leadership style in entrepreneurship.
Assistant Professor (Selection Grade),
Goli Vada Pav is a company founded by Venkatesh Iyer and
Dr. Gaur Hari Singhania Institute of Management & Research,
his friend Shivdas Menon in 2004. The objective of the Goli
Kamla Nagar, Kanpur (UP) INDIA
Vada Pav is to provide the affordable food items which can be
Email id: [email protected]
eaten anywhere and at anytime. Venkatesh Iyer and Shivdas
Menon faced a lot of problems in establishing the business
Mr. Randhir Kumar Singh
but ultimately they are able to get success in their motive.
Assistant Professor,
They compete with the international brands like McDonald
Dr. Gaur Hari Singhania Institute of Management & Research,
and others but ultimately they are able to make a position in
Kamla Nagar, Kanpur (UP) INDIA
the market and customers. Now-a-days there business are not
Email id: [email protected]
only situated in Mumbai but also in other places. In order to
fulfill the demand, Venkatesh Iyer and Shivdas Menon have
decided to adopt the concept of franchising and they have
successfully implemented it.
Venkatesh Iyer and Shivdas Menon adopted various strategies
of marketing in order to increase the sale of the eatable items.
The various concepts of strategic management focusing on
competitors also adopted which leads to the success of the
organization.
It can be concluded that it is Venkatesh Iyer whose Charismatic
leadership style in entrepreneurship leads to the success of
Goli Vada Pav Company which is fully supported by Shivdas
Menon.
Key Words: Goli, Charismatic leadership, HACCP, Business
Model.
It looks like something you must not ingest, and savoring its
tantalizing flavors requires that you willfully abandon all basic
rules of gastronomy and hygiene. It is perhaps the least likely
item upon which to build India’s very own fast food chain, a
product that has the potential of becoming an international
brand as big and powerful as, McDonald’s or Burger King.
This product was vada pav, the Mumbai’s local version of
Burger. The product was being made and sold by numerous
small vendors in almost all markets of Mumbai. Challenging
the experienced local players, that too, for ethnic food, was
not easy. Yet two Mumbai entrepreneurs with a background

1
Crorepati is a person who resides in a household whose net
worth or wealth exceeds ten million rupees, Crore is unit of
measuring the money. 1 crore is equal to 10 Million Rupees.
2
Vara pav, is also spelled wada pav, is a popular vegetarian
fast food dish native to the Indian state of Maharashtra (for
further information pl. refer to annex. 04 given at the end).

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HSB Research Review Vol. 3 No. 1 January-June 2012
In the fast food version, a plate already arranged with a variety
of cooked vegetables and curries along with a fixed quantity
of rice and Indian flatbreads is handed out across the counter
against a prepaid coupon. The curries and breads vary
depending on the region and local preferences. The higher
priced ones may add a sweet to the combination.
INDIAN FAST FOOD MARKET
India’s fast food market is worth US$9.33 billion, registering
year-on-year growth of 9% in 2010. The market is stipulated to
reach US$12.25 billion, with CAGR of 7% in the next 3-5 years
(2010-2014).The moderate growth is primarily attributed to
higher regional and local penetration of fast food outlets in
in corporate finance embarked on this quest seven years ago.
Tier II and Tier III cities along with improved household
The competition was stiff and from both ends, as building a
disposable income. Demographic segments aged between 25-
brand for this home-grown version of the burger meant
35 years are the largest consumers of fast food, with
competing with countless successful roadside rivals, and take
approximately 35% eating out once a month in cosmopolitan
on big players like McDonald and Burger King simultaneously.
cities such as Bangalore, Hyderabad, Mumbai, Delhi, Kolkata,
Goli Vada Pav, an ethnic fast food chain founded in 2004 by etc. The fast food market volume sales stood at 455.9 billion
Venkatesh Iyer and Shivdas Menon, changed the way this transactions, with year-on-year growth of 9.1% in 2010.
popular snack is prepared and consumed. It took the snack
Mumbai being the business capital of India is the most
indoors into a more gentrified ambience and made it a sterilized,
preferred destination for urban young business executives,
upmarket version of its original self, without tinkering one bit
and is the leading fast food market across India, with average
with the alluring taste that sustains vada pav’s mass appeal.
eat outs of 6-8 times per month. India is the third largest fast
Goli offers a range of vada pavs including palak makai tikki,
food market space across Asia-Pacific accounting for 12% of
cheese vada pav, etc. has proved to be big earners. Goli has
the total market in 2010. The working culture and lifestyle of
sold over 3.5 crore such vada pavs in the last six years, priced
Indians was drastically changed, with the opening of Indian
between Rs.10 and Rs. 30(Indian Rupee).
economy in 1990’s. The emergence of young working class
Running a business selling vada pav might seem like a simple changed many customs, like eating home cooked food. One
idea, but entrepreneurs Venkatesh Iyer and Shivadas Menon major attribute of most young working professionals is lack of
were planning a completely different vada pav manufacturing time. Vada pav had always been one of favorite fast food for
and selling business unit. The scale of operations desired the young population in Maharashtra, especially in Mumbai
required set up with capacity of 75,000 vada pavs per day, and (Bombay). LPG had made people more aware of food hygiene
that is not all; they also wanted it with hands-free technology issues and health has emerged as one of key concern.
with each of vada pav going through metal detectors and x-
SELECTING THE RIGHT PRODUCT
ray machines to maintain hygiene and all this without
sacrificing the taste. Venkatesh in his working with retails with Balaji Corporte
Services got hands on experience in running a retail chain,
FAST FOOD
became interested in food industry in 1995. He explored with
Fast food is the term given to food that can be prepared and many food items but could not make up his mind for selecting
served very quickly. While any meal with low preparation time any one. The idea of ethnic food came out by chance when he
can be considered to be fast food, typically the term refers to was discussing informally with a friend who was working with
food sold in a restaurant or store with preheated or precooked Kellogg’s India. His friend claimed that ‘Indian prefer Desi
ingredients, and served to the customer in a packaged form food’. This enlightened Venkatesh to consider Indian ethnic
for take-out/take-away. Outlets may be stands or kiosks, which food as his business. When he was studying the idea further
may provide no shelter or seating. he decided to take up finger food, something that could be
eaten while on move. After evaluating various factors and
INDIAN FAST FOOD
choices Venkatesh narrowed the choice to Idli and Vada Pav
Many of the traditional dishes have been adapted to suit the as his product.
emerging fast food outlets. The basic adaptation is to decrease
After careful analysis Venkatesh selected the Vada pav as the
the processing and serving time. For example, the typical meal
sole product for its business innovation based on certain
which called for being served by an ever alert attendant is
advantages like this being a finger food i.e. no plates, no
now offered as a Mini-Meal across the counter. In its traditional
spoons, no tables; no chairs required which saves the fixed
version, a plate or a banana leaf was first laid down on the
asset investment in the business. Vada pav is also a mobile
floor or table. Several helpers then waited on the diner, doling
food which one can eat while walking, talking, standing,
out different dishes and refilling as they got over in the plate.

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HSB Research Review Vol. 3 No. 1 January-June 2012
travelling, shopping etc., a universal appeal to it with the type handle the kitchen, eatery and transportation. For the next
of ingredient like potato, wheat and spices and this being one year, they visited every vada pav vendor to understand
food for the masses. Also this was among some of the fast the ingredients and to identify the impact of these on the taste
foods where the product is easy to prepare in a short span of of product. They also collected data by visiting all the major
time. This product is made up of potato and wheat which has vada pav sellers in Mumbai (Bombay) and surreptitiously ask
a universal appeal and contains “besan” (Gram flour) and them the number of pavs they sold every day to get an estimate
spices as the other ingredient which adds the ethnic appeal to of the sales and demand. By the time Venkatesh erected his
the product. Product prices vary within the range of Rs. 10-25 small outlet, selling vada, tea and some other snacks like
(Indian Rupees) according to the variety of Vada Pav offered. samosas, he had logged a number of failed attempts to set up
Goli vada pav kiosks on the footpaths of Mumbai.
With this and whatever information that could be gathered,
Venkatesh stated the business planning and collected more Initial response was satisfied, the sales and demand was
information of existing suppliers of vada pav, their taste, steady on rise, but Goli Vada Pav was nowhere close to
demand, quality of pav, size and weight of vada, type of raw reaching its present scale of operations, even two years after
material and ingredients used, price offered. He quickly launch. They were churning out a few hundred pavs the
identified the basic characteristics of the vada pav business. traditional way. But they faced huge wastage, pilferage and
It was only because of this firsthand information, Venkatesh quality issues. High footfalls at its outlets translated into high
was able to select the most preferred taste and could offer the sales, but the operations were fraught with unnecessary
product with desired characteristics. wastage of its raw ingredients, which escalated costs, and a
lack of standardization of quality and taste. While the
Traditionally, vada pav making is a small scale traditional set
traditional thelawalas would smash the potatoes and dip the
up which could be started with minimum investment. The
preparation in batter using his bare hands, at Goli each step in
traditional set up needed a gas/fuel based burner, a deep frying
the making of the vada pav is automated. Venkatesh was quick
pan, few utensils, and in majority of cases the vada pav were
to observe that in India, there is not much food safety norms
made and sold on hand carts. The product is supplied in paper
followed when it comes to street food. Consumer has no idea
plates or in paper bag. This traditional system had many
when and how the potatoes are washed, where they are stored
weaknesses, like-
and who handles them. Goli decided to offer branded and
• Frequent unpredictable changes in taste. quality food at comparable rates. The process involved is
• Quality depended entirely on the Cook or person similar to that of making a McDonald’s burger.
making vada. There are many hurdles in running a food business in India.
• The production was limited and capacity fixed. The major one being the price at which these food items are
sold tends to fluctuate on daily basis and second, the shelf
• Unhygienic conditions of making vada, as most work life of food stuff is short. India being a tropical country, the
is done by hand and the utensils, cooking ware were micro-organisms multiply fast, diminishing the shelf life of the
mostly open. food items. The vada standardization offered most complex
• Improper place to sit and eat vada pav. problem. It’s not that they did not try. To increase the shelf life
of its product, the firm tried various technologies used by
In spite of all these problems, vada pav remained most
dairy and other perishable-product manufacturers: ultra-violet
preferred all time fast food because it offered some unique
rays, nitrogen gas chambers, and even blast-chill refrigeration.
advantages like low cost product, easy availability, tasty to
But none of these methods produced satisfactory results.
eat, and any time food that could be substituted for meal. The
The key problem was of vada, a vital ingredient, had low shelf
business plan was to offer vada pav in a hygienic and clean
life.
environment, at an affordable price.
Goli team after many experimental failures realized the limited
THE BEGINNING
fund condition they had. They searched for financers; it was
Venkatesh developed the entire business plan by 2003. Now not an easy journey for the entrepreneurs. After receiving a
he needed finance, he took some money from friends and funding of Rs 4.5 crore in 2007 from a high net-worth individual,
relatives and Shivdas Menon, his old friend decided to join Goli was able to scale up the business Venketesh while
the venture as partner. Both of the promoters of Goli Vada Pav searching for solution of Vada shelf life came in contact with
come from corporate finance area and Venkatesh had Vista Foods, which prepares burgers for McDonald. Vista
knowledge of food retailing. Processed Foods, a subsidiary of the US company OSI, one
Venkatesh & Shivadas Menon quit their regular jobs and of the world’s largest food processing corporations, which
teamed up in 2004, and put huge chunk of their savings in the prepares burgers for McDonald’s. Goli Vada Pav outsourced
venture and also borrowed money from friends and relatives. the manufacturing of the potato dumpling to OSI’s fully
They invested Rs1.0 crore to buy equipment and a van, and automated plant near Mumbai. This plant has a global standard
build a 500-sq-ft kitchen at Dombivli. They hired 20 people to for food safety, and can prepare 100,000 portions in five hours.

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The plant is certified for hazard analysis and critical control According to company website, the aim of Goli Vada Pav is to
point, a global standard for food safety. Right from slicing, provide standardized ethnic fast food in clean and hygienic
peeling, dicing, sealing, packing and delivering, there is a conditions to mobile Indian masses at economic pricing. The
quality check and control at every stage. The vadas or golis innovation made by Goli Vada pav in its product line and the
as they are called are made at the OSI Inc Taloja unit, frozen at franchisee model are the key supporting factors which are
18°C, packed and sent to our cold storage unit in Dombivli in aligned to the vision of the company.
refrigerated vans. From Dombivli, these vadas are then
RESTRICTED ENTRY
supplied to the cold-storage units in Nashik, Aurangabad,
Nanded, Nagpur and Bangalore. The standardized vada pav Right from day one goli’s kitchen had restricted entry. Goli
has a shelf life of nine months. Manufacturing has developed a set of rules to be followed in
its facility. These rules apply even to anyone visiting the plant.
One cannot enter the kitchen without wearing gloves and
safety gears; even the shoes are thoroughly washed with
chlorine. The Goli outlets have been carefully designed
keeping in mind the cleanliness and hygiene aspects.
“Stainless steel equipment is being used at the outlets because
they are rust-free and easy to maintain. Wooden equipments
are not hygienic and there is fear of insects like cockroaches
Goli vada pav had have five refrigerated vans and each has a or termites which thrive in wood. Secondly, the uniform red
capacity to carry 12 tonnes of vada, ie, one van can easily and white tiles in every outlet compel the franchisee to maintain
store 800 cartons which comes to approximately two lakh his premises clean and hygienic.
vadas. These are supplied twice a week to all outlets within
Mumbai; once in a week to Nanded, Aurangabad and Nashik; Besides the outlets, the maintenance at the godowns or store
once in 15 days to Pune and once in two months to Nagpur houses is crucial. The ‘master franchiser’ and area manager
and Bangalore. The regional manager audits the van regularly are primarily responsible for the maintenance of the godowns.
and updates the log-book with details of the temperature Most important in the maintenance schedule is the temperature
maintained, and the vadas. These packets are marked with the levels in the refrigerator. This is to ensure that the food does
date of manufacture and the date of expiry. If anything is not not get stale or any kind of micro-organisms grow that could
correct, that packet can be identified and its origin and maker spoil the quality of food.
can be identified. At the Goli outlets, these vada pavs are BUSINESS MODEL
unpacked, deep fried and served with various kinds of stuffing.
Starting with its operations in early 2004 with the concept of
Goli, expanded the sales volume and has sold the product single ‘Quick service restaurant’, it cashed in on business by
purely through word-of-mouth publicity. Realizing the adding the differentiating feature in the India’s very own fast
enormous potential of business, Goli has been able to open food i.e. Vada pav with different fillings innovating the same
100 franchise stores in cities such as Mumbai, Bangalore, and to provide enriched experience as well as nutritional benefits
Pune. It was a gamble that paid off, thanks to rising incomes of having a Vada pav in comparison to road-side vendor. Also,
and fast-changing dietary habits among Indians in a buoyant the products are made in fully automated HACCP3 certified
economy. The response was good and Goli expanded to 10 hands free plant.
outlets in 4 months. Venkatesh had brilliance of providing
uniform to his staff in red and white ties and they had large
pictures of Goli product on the walls, just like McDonald’s
and Burger King. Goli Vada Pav not only maintains the quality
and taste of the food but also ensures economical pricing of
it. Currently the customers are served the basic vada pav at an
affordable Rs.17 only, in addition to it, they offer ten different
varieties of vada pav including palak makai tikki, cheese vada
pav, and aloo tikki pav etc.
MISSION STATEMENT
To provide standardized ethnic fast food in clean and hygienic
conditions to mobile Indian masses at economic pricing.
VISION STATEMENT
1. To create ethnic Indian brand in fast food industry.
2. To create fast food entrepreneurs across the country. 3
Hazard Analysis Critical Control Point or HACCP
3. To provide certified career opportunities.

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The gram flour-coated dumplings are packed, sealed in cartons, be exported. At the Goli outlets, these vada pavs are unpacked,
with manufacturing and expiry dates clearly stated, and deep-fried and served, with various kinds of stuffings.
transported in refrigerated trucks to warehouses and thereafter
Every Mumbaikar’s favorite snack which can be taken anytime
to franchises, where they are unpacked, deep-fried to order,
any where the one and only & our very own favorite — vada
and served scalding hot to customers. Each outlet has a single-
pav; which is now machined made. It has shelf life of nine
touch fryer, designed specially for the company by engineers
months. The new machine made vada pav is known as Goli
at the Veermata Jijabai Technological Institute in Mumbai.
vada pav. Right from slicing, peeling and dicing each process
Goli Vada pav tried to bring in the consistent flavor to its
is completely automated. The process involved is similar to
product by inspiring its supply chain from the McDonald way
that of making a McDonald’s burger. These vadas or golis as
of maintaining consistency. The filling inside the pav, better
they are called after being prepared are frozen at - 18 degrees
known as Goli to its customers, is centrally prepared in Mumbai
Celsius and then packed. These packets are marked with the
and reaches half-baked to its various stores which are popularly
date of manufacture and the date of expiry. Well after knowing
named as “Goli Vada Pav No.1” across Maharashtra to provide
this fact, I want to ask every mumbaikar; not only the
the same taste to its customers wherever they might be. The
mumbaikars but each and everyone whether they will prefer
Pav or the Indian bread is procured from individual city’s for
eating machine made vada pavs or the delicious freshly made
all the stores located in a particular city.
hot ones at the vada pav centre. Will there lay a difference in
Goli Vada Pav’s franchise outlets have grown from 10 in 2004 taste having a freshly made vada pav or will one prefer the
to nearly 100 by 2010. Its turnover rose from 3 million rupees machine made vada pav in this machine age, where everything
in its first year of operation to 150 million rupees last year. The is automated.
chain is planning a massive expansion to 500 franchise outlets
They serve 10 different varieties of vada pav ranging from
across India in the next five years, with a more than tenfold
Indian onion bhajji stuffing to Chinese sauce stuffing
jump in turnover to 1.8 billion rupees.
(Annexure 2 for product offerings). They have tied-up with
Initially Venkatesh was earlier also considering idli, but then Vista Processed Foods; a subsidiary of the US based OSI Inc,
he thought of vada pav as he wanted to give people food that which supplies burgers to McDonald Chain worldwide, for
can be eaten on the go. The job profiles of most people today the last forty years. There is an automated process for every
requires them to keep moving, there it no time to sit down and step: slicing, peeling, dicing, sealing, packing and delivering
eat. For such grabbing a vada pav while commuting is the the vada pav. There is a quality check and control at every
best and cheapest option, but lack of hygiene is a concern for milestone. The vadas are frozen at -18 degree Celsius and
most consumers, Venkatesh exploited this opportunity. packed and set to the outlets. At the Goli outlets, this vada
pav is unpacked, deep fried and served, with various kinds of
stuffing. The standardized vada pav has a shelf life of nine
months.

Goli, which offers a range of vada pavs including palak makai

tikki, cheese vada pav, veg cutlet pav, schezwan vada pav and
aloo tikki pav, has proved to be a big earner. Goli has sold over
3.5 crore such vada pavs in the last six years, priced between
Rs 10 and Rs 30. The company has tied-up with Vista
Processed Foods, a subsidiary of US-based OSI, to make vada
pavs. OSI also makes burgers for the McDonald chain
worldwide and around one lakh patties everyday in its plant Venkatesh has followed economy pricing strategy for Goli
at Taloja, near Mumbai. Vada Pav. The idea is to keep the basic vada pav for Rs 10.
The fryer machine that Veermata Jijabai Technological Institute However, there will also be some variations on the higher end,
engineers designed for Goli prepares pavs with the touch of a up to Rs 22. The company also has mixed vegetables vada,
button. Vadas made at fully-automated hazard analysis critical palak-makai vada, schezwan vada, cheese vada and sabudana
control points (HACCP) certified hands-free plant are frozen vada from now on in Pune. The pav will be made locally made
at -18 degree Celsius and packed and set to the outlets. The and the vadas will continue to be manufactured in Mumbai
standardized vada pav has a shelf life of nine months and can with automated technology.

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For Venkatesh and his business partner, Shivdas Menon negotiation is on franchisees in Hyderabad, Delhi, Punjab
maintaining the quality, scalability of their venture as well as and Rajasthan.
the shelf life of their product is important. Goli Vada Pav makes
Goli is now planning a massive expansion by opening around
75,000 vada pavs each day with hands-free technology and
500 outlets pan-India is eyeing a nearly 10-fold jump in its
each of them goes through metal detectors and X-ray machines
turnover to 180 crore over the next five-years. It will also scout
to maintain hygiene and taste. The vadas are made in Mumbai,
for partners in Dubai, the UK as well as Singapore. Initially,
coated with besan and then stored at -18 degree Celsius. They
the plan is to raise a venture capital funding of 40 crore in next
are then sent to the various franchise outlets, where after
few months to scale up its operations.
quickly frying for five minutes they are ready to serve.
UNIQUE ADVERTISING & BRANDING
FRANCHISE EXPANSION
The company has branded Goli vada pav and has positioned
Goli vada pav was incorporated with the idea of creating an
it as the local burger. For this the company used many
ethnic snack chain offering the staple Mumbai street food
innovative modes like going to the masses, on Ganesha festival
vadapav in standardized, yummy, hygienic manner at economic
‘Ganesha Chaturthi’, it made a huge Vadapav base over which
pricing there by becoming an alternative to traditional fast
Ganesha idol was kept and huge procession took place and it
food. Goli Vada Pav is available in nearly 80 branches across
was called as ‘Goli Ganpati’. It also made some music
Maharashtra. It has come to Bangalore through Goli Vada Pav
compositions with ‘Goli’ as the centre of attraction and played
No.1 outlet, which is located in 1st Block, Jayanagar. According
the same at their stores so that people who come to those
to M.C. Amarnag, the partner of Mysore Inc., which is the
stores to eat vada pav or pass by could associate with the
franchisee of Goli, all the products are prepared in a Hazard
brand name ‘Goli’. Also, company gave CDs to auto drivers to
Analysis Critical Control Point (HACCP) certified plant in
play it in their auto while they are driving and played CDs in
Mumbai. So the level of hygiene of these products is
Ganpati mandals so as to spread brand awareness among the
guaranteed. The company is planning a massive expansion,
masses. It also organized rock shows where it played its music
with 500 franchise outlets across India in the next five years.
CDs and distributed prizes to the best dancers in the
CENTRALISED BUYING OF RAW MATERIAL competition. Company also started with putting slogans like
“Goli Goli Goli...Vadapav Goli” during the train schedule
The potatoes are from Punjab, the processing is done by the
announcements at Mumbai local railway station.
specialist that works for McDonald’s and Goli Vada Pav turns
them into the Mumbai snack that was hot long before burgers Company has relied on positive word of mouth for advertising
came to India. All this at 50,000 vada pavs a day, standardized and has been using some latest media like face book and
to the last gram. At the heart is the kitchen, where the potatoes twitter for its promotion. Goli has also used the innovative
are turned into par-fried patties and then frozen before being technique of creating stories with goli vada pav as the key
fed through a cold chain to 65 outlets in the state. place that attract many users, and post them on the company’s
web site.
NEW MARKETS EXPANSION
UNIQUE PRODUCT DIFFERENTIATION
Selling and eating vada pav may be a part of the street food
culture for the city, but for Venkatesh it was about dreaming Goli product differentiation strategy was through the variety
about competing with multi-national burger outlets. From a of vada it uses to make the product, in comparison to its
small outlet in Kalyani, Mumbai, today he has gone to 27 competitors ranging from high-end food joints like
cities and 75,000 vada pavs a day and is all set to expand to 30 McDonald’s, Pizza hut etc. to low end competitors like local
more outlets in Pune and over 500 nationwide. At present, Vendors, Railway Platform Vendors, Desi Vada pav, Joshi Vada
Pune has two Goli Vada Pav outlets. The other locations in pav et al. The reason for the competition from High-end
Maharashtra include Nasik Dhule, Shirdi, Ahmednagar, International brand was the franchisee location of the Goli
Aurangabad and Jalna. stores where these players were found to be present and low
end competition was the high proliferation of road-side
The company is eyeing new outlets are in unrepresented
vendors and more and more ethnic fast food chains entering
market place in the next five-years, adding its new outlets
into this segment due to availability of market gap.
would all be on the franchisee model (Goli vada pav calls for
franchisee (Annexure 3) . The vada pav-retailer offers a range FUTURE PLANS
of vada pavs including palak makai tikki, cheese vada pav,
Goli Vada Pav plans a massive expansion by opening around
veg cutlet pav, schezwan vada pav and aloo tikki pav. The
500 outlets pan-India and is eyeing a nearly 10-fold jump in its
company has tied-up with Vista Processed Foods, a subsidiary
turnover at Rs180 crore over the next five-years. Presently,
of US-based OSI Inc, to make vada pavs. Vista makes around
the company has a 78 outlets strong network and a turnover
one lakh patties everyday in its plant at Taloja, near Mumbai.
of Rs18 crore. These 78 outlets mostly are concentrated in
OSI also makes burgers for the McDonald chain worldwide.
Maharashtra and Bangalore. But Company has already entered
On future plans, Venkatesh wants Goli product to reach every
Chennai market. The company is eyeing Rs180 crore turnovers
city. Goli had signed with a Chennai Food seller, and

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once its 500 outlets are in place in the next five-years, and 3. The Economic Times, March 7, 2011.
adding its new outlets would all be on the franchisee model.
4. The Hindu, September 23, 2010.
The company has tied-up with Vista Processed Foods, a
subsidiary of US-based OSI Inc, to make vada pavs. Vista 5. The Indian Express, January 16, 2011.
makes around one lakh patties everyday in its plant at Taloja, 6. Visit http://golivadapav.com/ on August 14, 2011.
near Mumbai. OSI also makes burgers for the McDonald chain
worldwide. 7. Visit http://knowledge.wharton.upenn.edu/india/
article.cfm?articleid=4321on September 01, 2011.
Goli is also planning to get into small kiosks of size 75 sq. ft.
with one staff manning it and serving just one product – vada 8. Visit http://www.dnaindia.com/money/report_goli-vada-
pav. In the next five years, we plan to set up 1,000 to 1,500 of pav-eyes-500-outlets-10-fold-turnover-jump-in-5-
such kiosks. Apart from that, Company has decided that would years_1430359 on August 26, 2011.
be coming up with large outlets in the size of 1,000 to 4,000 ANNEXURE 01
sq. ft.
Venkatesh Iyer on how he started the venture
The company also harbors overseas plans, once they achieve
the target of 200 outlets; the company plan to scout for partners
in Dubai, the UK as well as Singapore. Trade enquiries are
already coming from these regions. The company is keen to Venkatesh Lyer
expand the company’s footprint in USA, Europe and Australia 44 Years
and is scouting for franchise partners. The growing popularity Age at starting current business : 37
of vada pav, which is native to Mumbai, across India, does years
not surprise them.
Company Name : Goli Vada Pav
India’s food retail business, which accounts for 26 per cent of
Headquarters : Mumbai
the country’s GDP and is currently worth $70bn, is expected
to more than double to $150bn, according to the global audit Seed Captial Rs 1 Crore (Indian Ru-
and advisory firm KPMG. According to a report - Indian Fast pee 10 Million)
Food Market Analysis - released in September by the market Source of mony : Savings and loan
researcher RNCOS, India’s fast-food market is growing at an from family and friends
annual rate of 25 per cent to 30 per cent. The idea of having my own eatery had been simmering in my
COMPETITION INTENSIFIES: mind for a decade, but it took me a year to refine and serve it.
Months of brainstorming and sweating it out paid off when I
GOLI inevitably will face competition. Some chains have
opened my first outlet, Goli Vada Pav, at Kalyan, Mumbai, in
already recognized that India’s big markets exist down the
2004. I began my career as a management trainee, in 1989, in
price ladder. Domino’s Pizza has extended its international
what is now the Centurion Bank. After four years, I set up a
Pizza Mania promotion to India. But while the cheapest pizza
financial services firm, Balaji Corporate Services. Since one of
on its United Kingdom menu costs £4.95 ($9.11), in India the
the services included raising funds for retailers, I got a chance
cheapest is Rs. 35 (75 cents). An innovation in India, Domino’s
to study the trials and tribulations of running a retail chain.
has used the idea of free home delivery, if consumer order at
least four pizzas, they get free home delivery. But that works During all these years, I knew I wanted to start my own
out to just over $3. business, but it was only in 1995 that I decided which field it
would be—the food industry. I toyed with several ideas but
Another U.S. chain, KFC, has launched a snack box for Rs. 49
kept procrastinating as I didn’t believe the financial climate
($1.05) and a chana snacker for Rs. 25 (54 cents). Like the
was conducive for starting a business. The impetus finally
Domino’s Pizza Mania fare, these are not targeted at the bottom
came from a neighbour, who was the then CEO of Kellogg’s
of the pyramid, but at middle-class customers seeking value.
India. “No matter what we do, Indians prefer desi food,” he
Alongside the likes of McDonald’s, Subway and Pizza Hut, a
once told me. This got me thinking about the vast opportunity
large number of Indian food chains are ready to give the foreign
in ethnic food, especially if one were to consider the population
giants a run for their money.
of more than a 100 crore.
A prominent name in domestic market is Jumbo King Vada
If I could target even a fraction of this populace, the profit
Pav, which is Mumbai based business following cost based
could be huge. The important question was: what should I
promotional schemes.
serve? I wanted it to be finger food, something that could be
REFERENCES: eaten easily on the move. I whittled down the choice to idli
1. Business Today /COVER STORY /May 16, 2010 ‘Burger and vada pav, finally settling on the latter. During the
king’. incubation period, if I mentioned the idea to anyone, they
would snigger and ask, “Goli de rahe ho (are you pulling my
2. The Economic Times, December 31, 2010.

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HSB Research Review Vol. 3 No. 1 January-June 2012
leg)?” As a fitting response to this mockery, I named my Nutritional Benefits: This product is rich in
venture Goli Vada Pav. By January 2003, the blueprint was calcium, carbohydrates, Vitamin A, proteins and
ready. Besides my family, the only person who supported me fats.
through this and eventually joined hands with me was Shivdas Goli Masala Vada Pav
Menon, an old friend and colleague (Source: http:// This product is a blend of fresh green peas,
golivadapav.com/ on August 14, 2011). carrot and mashed potato with exotic Indian
spice, hexagonally shaped bread coated making
ANNEXURE 02
it crispy and mouth watery.
Goli Vada Pav Product Range and characteristics of each
offering. ANNEXURE 03
Goli Vada Pav GOLI CALL FOR FRANCHISE
A unique blend of mashed potatoes and ethnic
Who can become franchise of Goli vada pav?
Indian spices coated with beasen. To be served
with Sweet chutney, dry chutney and fried green Enterprising men and women passionate about food industry
chilly. having access to prime commercial property admeasuring 350
Nutritional Benefits: Rich in Carbohydrates, sq. ft. with a minimum of 15 sq. ft. frontage along with power &
proteins, fat, dietary fibre and iron. water connection in high traffic areas like railway stations,
A combination of spicy Chinese sauce with hot market area, business, colleges & residential catchments and
spicy vadas to be served with schezwan sauce. ability to invest approximately 8 to 10 lacs.
Goli Schezwan Vada Pav
Why Goli Vada Pav’s?
A combination of spicy Chinese sauce with hot
spicy vadas to be served with schezwan sauce. • Popular all time favourite convenient fast food
Nutritional Benefits: Rich in Carbohydrates, • Hygienic less oil fried snacks
Proteins, Dietary fibre, fats and Vitamin C.
• Output – 50 pieces can be fried in flat 6 minutes
Goli Cheese Vada Pav • Universal appeal – Potato, wheat & spices
A perfect blend of cheddar cheese and spicy
• Mobile food – Walking, talking, standing, travelling
hot vadas makes it a instant hit. To be served
with sweet chutney, dry chutney and green • Finger food – No plates, spoons, tables & chairs
chilly. • Standard tasty food – 365 days a year products taste
Nutritional Benefits: Product rich in Calcium, ‘YUMMY’ across locations
Carbohydrates, proteins, fibre and fats.
Goli Sabudana Vada • Food for the masses – Economic pricing
Sabudana vada’s are a blend of potatoes, sago, What does the franchise get?
vegetable oil and exotic Indian spices.
Traditionally enjoyed during fast. • Business model: A scalable time tested business
model
• Brand: 8 year old well established brand from
Goli Mix Veg Vada Pav Maharashtra
As the name suggests, this vada is a mix of
• Standard operating procedures: in all aspects of
green peas, carrots, beans and mashed potatoes,
business
rice formed and coated with batter and crumbs.
Served with tomato chutney. • Insulated against inflation: Franchise’s insulated
Nutritional Benefits: Rich in Carbohydrates, against inflation to a large extent
Proteins, Vitamin A, Dietary fibre and fats. • Logistics: End-to-End logistics support & regular
Goli Tikki Vada Pav replenishment of stocks
Tomato flavoured vada pav renowned for its
tantalizing tangy taste. To be served with tomato • Consumables: Oil for frying & packaging material
chutney. • Sourcing: Complete centralised buying & sourcing
Nutritional Benefits: Rich in Carbohydrates, (Oil to packaging materials)
proteins, fibre and fats.
• Continuous R & D: Seasonal as well as breakfast
Goli Palak Makkai Tikki
menu on the cards
This rich & nutritious product is an absolute
delightful blend of mashed potatoes, sweet corn • Footfalls: Continuous Marketing Support to drive in
& spinach. To be served with veg mayonnaise footfalls
sauce.

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HSB Research Review Vol. 3 No. 1 January-June 2012
• Operations: Complete Operational Support to batata, the latter referring to a potato. Pav refers to
monitor & drive business unsweetened bread or bun and may be etymologically related
to the Portuguese word for bread – Pão. Vada pav was
• Training: Initial & refresher training for business
supposedly devised by snack vendor Ashok Vaidya outside
owners and store staff
Dadar station in 1971.
• Shelf life: Life of product increased to 9 months
Preparation of Vada Pav
• Wastages – Wastages reduced to nil
Finely cut green chilies and ginger and a phodani (tempering)
• Dry Kitchen – Ready to fry products; only mode of of mustard seeds and turmeric are added to a mash of boiled
cooking is frying. potatoes, and after dipping patties of the mash in an herb-
In Goli Vada Pav, we seek passionate people and equip them seasoned batter of gram flour, the patties are deep-fried. Vada
with essential support and assistance they need to achieve pav is typically served with a chutney (sauce) which is
and exceed their goals. commonly made out of shredded coconut “meat”, tamarind
pulp, and garlic.
(Source: http://golivadapav.com/ on August 14, 2011).
Variations of the above basic dish include “cheese vada pav”
(where slices of cheese are added); “samosa pav” (where a
ANNEXURE 04 “samosa” is used instead of a vada); and “Jain vada pav”
(where vada ingredients do not include onions, garlic and
MAKING VADAPAV
potatoes). Vada pav served in the nearby state of Gujarat is
Place of origin: India usually fried in butter or edible oil. The pav is first fried in a
Region or state: Maharashtra mixture of butter or oil and dried red chilly powder. After that
Course served: snack the chutney is applied in the hot fried Pav and the Vada is
Main ingredient(s): deep-fried placed in between. This is the only difference between Vada
mashed potato pattie. pav in Gujarat and Maharashtra. In the state of Gujarat, the
USP- original unfried Vada Pav recipe is referred to as “Bombay
• Cheapest form of a meal Vada Pav”.
• Ever-green dish can be in breakfast, lunch, or dinner.
This dish was initially started as the cheapest form of a meal
• Easy to make, needs minimum equipments.
for low income group, but due to its taste, this dish became so
• Can be eaten while travelling
popular that many sophisticated hotels also have started
Vada pav (Marathi: oM+k iko), sometimes spelled wada pav, is a dishing out this wonderful dish. Even today this dish has still
popular vegetarian fast food dish native to the Indian state of retained its charm as an evergreen dish, and many people
Maharashtra. It consists of a batata vada (Boiled potato stuff have it at breakfast, lunch or even dinner as well. Another big
wrapped in chickpea flour, deep fried) called bonda in South reason of its popularity is that the dish can be made and
India) sandwiched between two slices of a pav. The compound served in 1-2 minutes, and has only 2 or 3 ingredients (Source:
word batata vada refers in Marathi to a vada made out of http://golivadapav.com/ on August 14, 2011).

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