The Aurum Perspective – Restaurant chains in India would need to acquire restaurant formats, outside their core, in order to build scale.
Fine dining restaurant chain Speciality Restaurants, which is backed by multi-stage PE investor SAIF Partners, is acquiring majority stake in Mumbai-based bakery chain Love Sugar Dough, as per a stock market disclosure.
VCCircle had first reported in June 2013 that the company is in talks with firms to acquire a bakery chain.
It is picking 51 per cent stake for Rs 75 lakh.
Love Sugar Dough is a Mumbai-based company set up in 2011 by Nauzad Munshi and Tarannum Merchant. It has eight bakery stores spread across Mumbai, Pune and Surat and wish to scale up and expand the stores in other cities.
“We were looking at entering quick service restaurants as well as bakery chains. Though Love Sugar Dough is a small chain; it is an initiative in that direction. We wanted to invest in a company that had the potential of scaling up; as this is a new startup we felt it had potential and so the investment,” Rajesh Mohta, executive director finance, Speciality Restaurants Ltd, told VCCircle.
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