Everstone in Burger King India tie-up

The agreement includes a development license as well as long-term master franchise and sub-franchise rights for all of India. Everstone will work with Burger King AsiaPac to set up a supply chain in India and roll-out restaurants across the country.

"Everstone will bring its vast consumer insights, extensive retail real estate expertise, experience of food and beverage operations as well as requisite capital to bear to build the Burger King brand into India's leading quick service restaurant," Sameer Sain, co-founder and managing partner at Everstone, said in a statement.

The GP's F&B portfolio includes Pan India Food Solutions in 2006's Indivision India Partners fund, which runs Noodle Bar, Bombay Blue and Copper Chimney brands under the Blue Foods umbrella. In 2011 the PE firm also bought a 45% stake in JS Hospitality Services, which operates about 24 restaurants under the Pind Balluchi brand.

According to a Crisil report, the fast-food segment in India was worth INR34 billion ($564.7 million) in 2012-2013 and will grow to INR70 billion ($1.1 billion) in three years. Pizza company Dominos' has one fifth share of India's fast-food segment, while Subway and McDonald's have just over 10% each.

McDonald's entered India in 1996 and has about 250 restaurants through two master franchisees - Hardcastle Restaurants for west and south India and Connaught Plaza Restaurants for the north and eastern parts of the country.

Hardcastle currently has 166 outlets of the fast food chain and plans to invest up to INR3 billion ($48.2 million) to add 75-100 more by 2015. The company expects to invest INR25-30 million per restaurant. Hardcastle's holding company, Westlife Development, had revenues of INR6.84 billion in the 2013 financial year.

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• Topics
• South Asia
• Consumer
• Everstone Capital
• Consumer
• India
• Joint Venture