Speciality Restaurants Limited, which owns brands like Mainland China, Oh!Calcutta and Sigree among others, would invest Rs 40 crore for expansion and refurbishment of existing outlets over the next 18 months, a company official today said.
The company would open 8-12 new restaurants under its brands and the expansion would entirely be funded from internal accruals, MD of Speciality Restaurants Anjan Chatterjee said.
"We are entirely debt-free and the entire funding for expansion would be from internal accruals. We have Rs 70-75 crore lying in the bank," he told reporters.
Chatterjee was addressing a press conference on completion of 25 years in the hospitality business.
Chatterjee said the rollout of Goods and Services Tax (GST) last year had upset the company's gameplan, affecting both the bottomline and expansion programmes.
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"We are not getting any input tax credit under GST. This is hurting the restaurant business in a big way. We could have spent more on expansion. But GST has come in the way. And there is a 12 per cent hit on the bottomline as well," he said.
He said the company has been forced to increase prices by three to four per cent.
It is also in the process of incubating new brands like Spicery, he said.
Speciality Restaurants as of now runs 125 restaurants across the country, of which 17 are franchised.
Apart from India, it has outlets in Colombo, Doha, Dubai, Dhaka and Tanzania and plans to open outlets in new overseas locations, he said.
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