Navis sells Nirula's to Indian trade buyer

Last month, Navis was reported to be in discussions with a Mumbai-based hotelier to sell the company for INR1.5 billion ($27 million), but unverified sources cited by The Economic Times this week put the figure at closer to INR600-800 million.

"The biggest asset is the Nirula's hotel property in Delhi-NCR, it is a key real estate asset. The restaurants by themselves did not get a very high valuation," one of the sources said.

Also last month, Navis acquired the remaining shares it did not already own in Nirula's, which operates food and ice cream restaurants in India. In a move that was ostensibly designed to smooth the progress of a sale, the investor bought the stake held by the Delhi-based company's co-owner, Samir Kuckreja.

The PE firm first acquired a majority stake for INR900 million ($19.65 million) in 2006. In 2010, it provided a cash injection of INR300 million, and secured another INR200 million through debt and sales of franchise rights to help fund expansion into 7-10 cities across the subcontinent. It planned to add a total of 125 shops and other outlets nationwide that year, including 80 in Delhi, but appears to have scaled back those plans as it currently totals less than 80 across the whole of India.

Established in 1934, Nirula's operates the eponymous restaurants, the Nirula's Potpourri casual dining outlets and two hotels, and is present across Delhi and NCR, Uttar Pradesh, Maharashtra, Madhya Pradesh, Uttaranchal, Haryana, Rajasthan and Punjab.

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• Topics
• Exits
• Consumer
• South Asia
• India
• Navis Management
• Consumer
• Trade sale