Navis gets full control of Indian restaurant chain Nirula’s

Navis bought the stake held by the Delhi-based company's co-owner, Samir Kuckreja, having first acquired a majority stake for INR900 million ($19.65 million) in 2006. "It is the oldest and largest Indian fast food and ice cream business," Nicholas Bloy, co-managing partner at Navis, told AVCJ at the time. "Its particular strength is in Northern India, but the brand is known across the nation and has something of an iconic status."

In 2010 the private equity firm 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.

Established in 1934, Nirula's operates the eponymous restaurants, the Nirula's Potpourri casual dining outlets and two hotels, and is present in more than 85 locations across Delhi and NCR, Uttar Pradesh, Maharashtra, Madhya Pradesh, Uttaranchal, Haryana, Rajasthan and Punjab.

Navis told AVCJ that the predictable returns of fast food franchise investments make them a preferred target, as does the potential for expanding the franchise networks to capitalize on the region's rising disposable incomes.

A number of private equity firms are seeking exposure to India's food and beverage sector, notably fast-food and mid-range restaurants. Last month New Silk Route acquired a minority stake in Vasudev Adiga's Fast Food, which runs a chain of south Indian restaurants.

Notable transactions last year included ICICI Venture buying a 10% stake in Devyani International, which has franchise rights for Pizza Hut, KFC and Costa Coffee; India Equity Partners investing $35 million in Sagar Ratna, a local specialty restaurant chain; and Beacon India Private Equity committing INR80 million to Impresario Entertainment and Hospitality, which operates fine dining restaurants Mocha and Smoke House Deli.

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• Topics
• Buyouts
• Consumer
• South Asia
• buyout
• India
• Consumer
• Navis Management