CPRL was a 50:50 JV between McDonald’s and Bakshi. The partnership flourished for many years, outperforming its rivals. However, the first cracks in the JV appeared in 2008, when McDonald’s tried to buy out Bakshi’s share of their JV for US$7 million. Bakshi thought this was far less than it was worth. Reportedly, consulting firm Grant Thornton valued CPRL at US$331 million in 2009... ..

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The closure of the McDonald’s outlets in northern and eastern India was hurting the fast food chain’s business in the country. In the year ended December 2017, McDonald’s India posted a loss of Rs. 3.05 billion. Reportedly, the company had made a provision of Rs. 1.98 billion in its financial statements to cut back losses accumulated due to the termination of the franchise contract with CPRL. ..

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While Bakshi had expressed his willingness to agree to an out-of-court settlement, McDonald’s stated that there was no such possibility. McDonald’s planned to appoint a new licensee partner and rebuild its brand across the northern and eastern markets. However, some analysts felt that the development would be challenging for McDonald’s as the company would need to rebuild its brand across half the country...

EXHIBITS

Exhibit I: McDonald’s vs Domino’s Pizza in India
Exhibit II: Top Ten Quick Service Restaurant Brands across India in 2016
Exhibit III: Performance of McDonald’s Franchises in India
Exhibit IV: Revenue Growth of Key Players in QSR Sector in India
Exhibit V: McDonald’s vis à vis its Major Competitors in India