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Co-founder and former executive director of Shanta Biotech, Khalil Ahmed, has acquired city-based food brand Hyderabad House for an undisclosed consideration.
The acquisition was done through a one-time special purpose vehicle Food Krafters & Services LLP (FKS), promoted by Ahmed and his daughter Sumaiya Khalil. With this, FKS now plans to establish a firm footprint in the fast-growing food services market, in particular the quick restaurant services (QSR) segment.
To add value to the brand and widen the services basket, FSK is planning to bring in a fresh team of professional chefs on board Hyderabad House’s food catering business to provide on-site wedding services, corporate events, and also dish out more than 1,000 new items.
Speaking to Business Standard on phone, Ahmed said the deal did not “involve any cash transaction” and the existing promoters at Hyderabad House would “ get to earn” tracking the “upside” (revival) of the brand going forward. The ownership of the brand will be with FKS.
FKS plans to restructure the existing 40 outlets of Hyderabad House, which also involves closing down some of them. The makeover involves FKS opening 50 new redesigned outlets to compete with other dominant players in the QSR segment. FSK would spend Rs 35 crore in the next two years.
It looks like the PE investors have developed a taste for India's QSR business houses, if one goes by the recent developments. Last year, SAIF Partners had invested Rs 40 crore in Bengaluru-based TMA Hospitality Services, which owns the Ammi's Biryani while India-focused PE player Samara Capital had reportedly invested Rs 50-60 crore in Hyderabad-based Paradise Biryani.
Paradise Biryani, which claims to be “the world’s favourite biryani”, of late is on an expansion spree. With the backing of Samara Capital, it is expanding aggressively by rolling out exclusive food-and-dine outlets in the south metros, including Chennai and Bengaluru. Paradise is patronised by celebrities including cricketers Sachin Tendulkar and Rahul Dravid; Bollywood actor Salman Khan, Congress vice president Rahul Gandhi and chef Sanjeev Kapoor.
Organised QSR biryani market is worth Rs 2,000 crore, dominated by a few large chains like the Karim's in Delhi, Lucky in Mumbai, Nagarjuna in Bengaluru and Paradise among others.
Hyderabad House is popular for its ‘Kacche Ghost ki Biryani’ and other Deccan delicacies.
