Arisaig invests $30m for stake in India McDonald’s franchisee

Arisaig will subscribe to 5.4 million new shares in a preferential allotment at INR333.05 apiece, a premium of 3.3% above the last trading price. The deal values the company at INR50 billion.

Westlife's share price has made a steep climb over the last eight months, from INR16.9 per share in December 2012, when Hardcastle's merger with Westlife was announced, to INR328.45 yesterday.

Hardcastle's net profit for the year ended March 2012 was INR425.1 million, up 126% from the previous year. Revenue for the period rose 44% to INR5.44 billion. Westlife plans to double its store count over the next couple of years. The company had 148 restaurants as of December 2012.

Arisaig has picked up the stake through Arisaig India Fund, which is part of the $3.2 billion Arisaig Asia Consumer Fund. As of June 30, more than one third of its capital was invested in fast moving consumer goods and retail businesses in India. These include Marico, Nestle India, Godrej Consumer and Jubilant Foodworks, which operates Domino's Pizza.

The quick service restaurant business in India is estimated to be worth more than INR20 billion, growing at an annual rate of around 40%. Its share of the Indian food services industry is expected to double from 16-20% to 45% by 2015, according to Euromonitor International.

 

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• South Asia
• Consumer
• Expansion
• India
• Consumer
• Growth capital