New Delhi: The country’s leading foodchain Nirula’s is planning to set up food courts jointly with Mars Restaurants, even as it is looking at outsourcing its back-end food supply to Sky Gourmet Catering.
The plans followed acquisition of Mars Restaurants and Sky Gourmet Catering by India Hospitality Corp (IHC) for $110 million from Malaysian private equity firm Navis Capital.
Navis had retained an option to re-invest up to $75 million in IHC, which will take its stake in the latter to 20.7% stake. On the other hand, IHC agreed to purchase Nirula’s from Navis and its affiliates.
Nirula’s CEO and Managing Director Samir Kuckreja told PTI once the deal between IHC and Navis materialises there would be a lot of synergies between Mars, Sky and Nirula’s.
“Mars and Nirula’s could open food-courts together and place joint purchase orders to cut down costs,” he said adding Sky would also provide the back-end food supply to Nirula’s.
“Nirula’s is expanding in Mumbai and for that Sky will be providing the back-end food supplies,” he said.
On the issue of Navis’ stake sale in Nirula’s, Kuckreja said discussions with IHC and diligence process is on, it would take another six-eight months to figure out how the final deal would be like.
He said Navis Capital Partners were in discussions with IHC, to sell a “certain minority stake” in Nirula’s to fund the chain’s expansion plans, while the management will remain with the existing team.
Nirula’s had recently announced its plan to open 150 new outlets with an investment of Rs100 crore, of which Rs20 crore has already been made. The proposed deal is likely to provide growth capital to the company.