Food services and hospitality company SKFS Group is acquiring 100% equity in Mirah Hospitality & Gourmet – which owns restaurant brands Rajdhani, Bayroute and Hitchki – for Rs 80 crore.
“We are looking to scale up the business nationally; we see this as a strategic acquisition to take forward our food services business, with fresh investments in upgradation of our existing outlets,” SKFS Group chairman Dinakara Shetty told ET.
He said the group’s existing business verticals “will align and synergise well” with the acquired restaurant brands.
Aji Nair, chief executive of Mirah Hospitality, said post the acquisition, Mirah Hospitality, which operates 30 outlets across its brands, will become a 100% subsidiary of SKFS Group.
“We are looking to expand Mirah Hospitality pan-India and are exploring adding two new brands under the new ownership. Overseas expansion is also on the cards,” Nair said.
The Rs 350-crore SKFS, cofounded by Shetty and group managing director Harish Shetty more than three decades ago, operates restaurants in hotel chains such as Marriott and Ramada, besides premium corporate catering across clubs, office complexes and hospital chains.
Deals in the foods and beverages sector have picked up in recent months, amid increased local competition and influx of global brands in India, despite a slowdown in the quick services sector.
Tiger Global-backed tea cafe chain Chaayos last week acquired cookie maker Dohful, Ravi Jaipuria-owned Devyani International Ltd (DIL) has signed franchisee deals with three mid-sized global cafes, and Theobroma and Belgian Waffle are in advanced talks with Chrys Cap and others for divesting equity.
DIL in its earnings statement on Monday said it has inked exclusive master franchise rights for three modern quick service restaurant brands: Tealive, New York Fries and Sanook Kitchen. Tealive is a Malaysian tea and beverage chain with more than 900 outlets globally. New York Fries (NYF) is franchised by Recipe Unlimited, a Canadian multi-channel restaurant chain. Sanook Kitchen, headquartered in Singapore, deals in Thai and Asian cuisine.
In the past, Mirah Group operated brands like Café Mangii, Falafel, and United Sports Bar & Grill. Following group-level legal issues, the Supreme Court placed Mirah Group on auction. Nair said Mirah will continue operating in the hospitality business under the new ownership.
According to a report released by National Restaurant Association of India (NRAI this July, the Indian food services market is estimated at Rs 5.69 lakh crore in FY24. It will grow to Rs 7.76 lakh crore by FY28, fuelled by a rising middle class, the increasing propensity to dine out, aspirational demand from tier 2 and 3 locations, and food delivery platforms facilitating reach in newer markets, it said. The report said the food services sector would grow at an 8.1% compound annual growth rate between 2024 and 2028.
Source: Economic Times