RJ Corp to raise 2,500 cr by listing Devyani

RJ Corp to raise 2,500 cr by listing Devyani

New Delhi: Delhi-based RJ Corp on Wednesday said its food company Devyani International plans to raise Rs2,500 crore through a public issue next year to fund expansion.

“We are planning to list Devyani International by third quarter of next year by divesting about 25% stake. The total amount of money to be raised is still being evaluated but it could be around Rs2,500 crore," RJ Corp chairman Ravi Jaipuria told the news agency.

Devyani International is one of the group firms of RJ Corp that operates chains of food and beverage brands such as KFC, Pizza Hut and Costa Coffee in India.

“Currently paper work and accounting for the IPO is being done," he said, adding the funds will be utilised to fund the company’s expansion plan.

The company that today opened a new format of Costa Coffee outlets, is looking at have a total number 120 outlets by next year.

Under the new format, the company has also included breakfast and other food items besides coffee and snacks.

At present, Costa Coffee is present in four cities in the country with 70 outlets. It plans to open another 50 by the end of this year, entailing an investment of Rs40 crore.

“For every outlet, we require up to Rs80 lakh," Devyani International chief executive officer Santhosh Unni said.

“Our research on Indian consumers shows that they want more food items rather than just coffee and sandwich. This is a concept which we are doing only for India," Unni added.

The new format requires a space of around 1500-2000 square feet, as compared to the existing outlets that are spread between 1,000-1200 square feet.

Devyani Food also has other food and beverage brands in its portfolio such as CreamBell Icecream and ABInBev beer.