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Private Equity | 2 September 2013

New Silk Route To Acquire Majority Stake In Moshe's

by Tilak Devadiga
New Silk Route To Acquire Majority Stake In Moshe's
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PE firm, New Silk Route is acquiring 51% stake in Moshe's which runs premium restaurants and cafe chains with a focus on Mediterranean cuisine, TOI states. The deal is part of NSR's ambitions to build a platform of Indian food and beverage companies in which it would buy controlling stakes and is awaiting final formalities.

Investment bank Lodha Capital Markets is the advisor to this deal.

NSR had invested R200 Cr in South Indian vegetarian restaurant and fast food chain – Adiga's last year and is also a parent investor in Cafe Coffee Day.

Moshe's which currently runs nine premium restaurants and cafes chain was established by Moshe Shek who had earlier worked in the kitchens of the Taj Mahal hotel in Mumbai and Tel Aviv Hilton.

Moshe's has it’s own in-house speciality bakery and patisserie and delivers fresh bread and desserts at each of the outlets.
Moshe had been looking for a buyer to fund his next phase of expansion plans. Post acquisition the 44-year old founder will retain a small stake and continue to manage the business.

New Silk Route is a Asia-focused growth capital firm founded in 2006 with $1.4 billion under management, focused on the Indian subcontinent, as well as other rapidly growing economies in Asia and the Middle East.

It has set aside $100 million to fund the F&B platform, which is incorporated into a private company holding shares in a slew of operating assets.
NSR’s other key investments in India include 9X Media, Capricorn Hospitality, KS Oils, Ascend Telecom Infrastructure, Reliance Infratel and VRL Logistics.

The firm was also looking at North Indian resto chain, Punjabi By Nature for a stake buy, earlier this year.

The organized sector market for food and beverages, which was $500 Mn in 2006 and $1.5 Bn in 2011, is estimated to grow at 30% to reach $6 Bn by 2016, according to Technopak Emerging Trends in Indian Retail and Consumer.

The Indian Restaurant industry is worth R43,000 Cr. Though only 16% of this market is organized, it is poised to accelerate to 45% by 2015.

Other deals in this space ;

  • Arisaig Partners through its Arisaig India Fund had picked up additional 4.5 Mn shares at R34 of Westlife Development for a total of R153.45 Cr hiking its stake by about 2.89% in the company from the earlier 3.5% stake which was allotted to it in July this year on a preferential basis for R180 Cr.
  • IDFC PE was planning to invest R150 Cr in Manpasand Beverages for 10 % stake.
  • Cookie Man, the Indian arm of Australian Foods had acquired Sathyam Cinemas eatery ID (Idly and Dosa).
  • CX Partners was planning to invest R100 Cr in Barbeque Nation Hospitality Limited.
  • Ubiquitous Foods, which runs bakery chain Ovenfresh had raised undisclosed amount from Kalaari Capital

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