After a hiatus of about two years, a family member of the promoters group of Nilgiris Dairy Farm & Retail, is back running the flagship Nilgiris retail store in Bangalore on Brigade Road.
C Kumaravelu, the third son of Chenniappan who pilotted the Nilgiris brand for nearly five decades, recently took over the franchiseeship of this flagship store. Kumaravelu confirmed that he has indeed taken up the franchisee of the store from Ketty Retail Ventures, which was running the stores for nearly two years. Ketty Retail was initiated as the master franchisee after UK-based private equity fund Actis picked up a 65 per cent for around Rs 300 crore in Nilgiris Dairy Farm during 2007.
In the past two years, the Nilgiris franchise has nearly doubled to close to around 100-stores from around 50 when Actis picked up stake in the firm. Even as this retail network is being expanded, the company has decided to roll back its diversification move and has pulled the plug on it’s bakery eat-in concept - Nilgiris Masala Bread.
This move to exit this concept comes close on the heels of the company exiting its hospitality business by selling its three main properties for around Rs 95 crore. The company is also understood to be mulling unlocking its real estate holdings in Bangalore which is expected to fetch close to Rs 100 crore.
This commercial property, which has been with the Nilgiris’ family for long, is understood to have been put on the block to raise cash for expanding the retailing franchise of Nilgiris across South India. Industry information indicate that the company is looking to sell a 12-acre plot in Bommasandra on the outskirts of Bangalore city.
In addition to exiting non-core assets, the company is also embarking on a strategy which might eventually see all Nilgiris’ branded products to be available only in their outlets. According to the company, the 100-odd stores generate sales of over Rs 300 crore annually.