News Column

Massive Restaurants Plans PE Fund Raise

June 15, 2014

Massive Restaurants which runs the Indian-themed Masala Library, Made in Punjab and Farzi Cafe chain of restaurants and cafes is planning to raise INR 500 Mn from private equity players to fund its expansion plans.

Lodha Capital Markets holds the sell side mandate for the deal and is in talks with PE funds focused on the F&B sector.

Mirah Hospitality and Zorawar Kalra, son of celebrity food writer and chef Jiggs Kalra promoted Massive seeks to enhance its presence pan India and in overseas market such as United States, United Kingdom and the Middle East using the funds.

The partnership launched in 2012 operates under three three formats a fine dining premium restaurant named Masala Library by Jiggs Kalra; a casual dining restaurant Made in Punjab, and premium sweet shop called Mithai by Jiggs Kalra.

It recently launched Farzi CafÉ -modern Indian bistro & tapas bar and a signature gourmet Indian confectionary brand,

The company is planning to open 8 outlets in the coming four years targeting a topline of INR 3,000 Mn.

With a current revenue of around INR 300 Mn, the deal could value the company anywhere between INR600-900Mn.

This is the second venture for the father and son who had earlier teamed with Amit Bur man's Lite Bite Foods, to form Wrapster Foods, which ran restaurant chain Punjab Grill, among other, before successfully exiting in 2012.

The Indian food market is approximately INR 2500 Bn (c. $69.4 Bn), of which value-added food products comprise INR 800 Bn ($22.2 Bn).

Other recent deals;

Wedding planner and food services company Epicurean Events and Services had picked up a majority 51% stake in multi-cuisine restaurant chain Nalas Aappakadai for an undisclosed amount; Dubai based Dodsal Group was in talks to sell its Pizza Hut'sIndia food business and had appointed boutique investment bank Euromax Capital to scout for buyers; Pan India Food Solutions Private Limited was planning to divest stake to PE or strategic investors to raise growth capital.

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Source: DealCurry (India)

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