Chennai-headquartered TVS Shriram Growth Fund has invested an undisclosed amount in Indian Cookery Private Limited, the restaurant business promoted by chef Sanjeev Kapoor & Better Value Brands Private Limited. Indian Cookery owns multiple Indian-cuisine restaurant brands such as The Yellow Chili, Khazana and Indii. The company plans to open 300 outlets over the next five years through owned and franchised models.
The deal comes less than two months after , the Indian franchisee of international chain of Papa John’s Pizza, Chili’s Grill
& Bar and The Great Kabab Factory. TVS Shriram Growth Fund I is a Rs 600 crore fund managed by TVS Capital Funds Ltd.
Better Value Brands promotes several brands including Talwalkars Better Value Fitness, which was listed on the exchanges last year. It has also promoted playschool firm Brainworks Learning System.
Indian Cookery currently operates 16 The Yellow Chili restaurant outlets across India based in NCR, Mumbai, Bangalore, Hyderabad, Guhawati, Ludhiana, Ahmedabad, Bhuj, Panchkula, Jalandhar & Pune. It plans outlets in Kolkata, Chandigarh, Ludhiana, Kathmandu, 4 in Bahrain, 8 in Saudi Arabia. Indian Cookery has 2 Khazana restaurants in Dubai and Doha, Qatar with an additional three planned in Saudi
Arabia.
“We want to grow ICPL into the top 5 Indian brands globally in dining experience over the next 5 years. We are targeting to open 300 outlets in five years through company owned, franchised and managed models,” said Sanjeev Kapoor, the promoter of ICPL who gained popularity after hosting TV show Khana Khazana. Last year Kapoor sold a stake in his television venture to Malaysia-based investor Astro All Asia Networks.
The total restaurant market in India is nearly Rs 45,000 crore, with less than 20% of that being penetrated by organized branded vendors. The organized branded food services industry is expected to see upwards of 20% growth in the future with factors lie growing incomes and urbanization, according to a statement from TVS Capital.
TVS Capital has invested in media firm 9.9 Mediaworx, logistics solutions provider TVS Logistics, facilities management company Dusters Hospitality and book retailer Landmark, and most recently in
Medfort Hospitals, a healthcare firm focused on eye and diabetes care.
The interest in the food related business has increased over the last year, especially after gains showed by Domino's Pizza franchise Jubilant Foodworks after its IPO last year. Another PE firm actively
looking at deal making in the space is India Equity Partners, who has reportedly earmarked $100 million for buyouts in the space. The firm is reportedly in talks to buy majority stakes in restaurant firms BJN
Group and Sagar Ratna besides Innovative Foods, the makers of Sumeru frozen food.