SV group to set up four restaurants in Punjab

Ludhiana-based export house SV Group, exporters of spinning and hosiery products to the US and Europe and with an annual turnover of $5 million, forayed into the hospitality industry when it set up SV Foods and also took the franchisee of Mark Pi restaurant in April 2005 in Ludhiana.

Exactly one year later, SV Group launched its own restaurant "Indian Summer" and now, the company is planning to expand in Punjab with an investment of more than Rs 11 crore in next two years.

Under the expansion plan, SV Group will open four restaurants (in Jalandhar, Amritsar, Patiala and Mandi Gobindgarh). Two of them will be company-owned and two on franchisee basis. Besides this, the company will also come up with a hotel in Ludhiana, the construction of which has already started.

Speaking to Business Standard, Rakesh Kansal, managing director, SV Group said starting a restaurant chain in Punjab is a profitable business.

Prior to this, our company S V Exports has been in export business since 1952. Right now, we are exporting to companies like French Connection, Getracan, Cosaco, Bert Pullitzer, Parasuco, TCF, H&M etc in USA and Europe.''

Talking of his company's expansion plans, Kansal said for our restaurant "Indian Summer'', we have received enquiries for taking its franchisee from New York and Germany.

"But right now, we want to focus mainly on the Punjab market because it has a huge potential. That is why; many multinational food chains are opening their outlets here. Our hotel, Leicester Square, will come up in Ludhiana by March 2008 with an initial investment of Rs 7 crore, excluding the cost of land. It will have 24 luxury suites, a bar and two restaurants.''

"Our four restaurants will come up with an investment of Rs 4 crore and will be ready in two years," he added.