The B2B opportunity is coming across many new investors in the industry and many B2B investment opportunities exist for PE/VC firms in this sector.
· Central Kitchens: The demand for central kitchens will increase in the near future as a result of the growth of large institutions, airlines, educational institutions, and hospitals, etc. On an average, a central kitchen entails an investment of INR 1.6-2.1 crore (USD 0.3-0.4 million) and is opportune for expansion, aided by a business model that enables both onsite and offsite delivery.
· Commissary: The growth of organised QSR and Cafes will advance the setting up and expansion of commissaries in order to meet the demand in these segments. Commissaries are lucrative as an investment opportunity as they hold the potential for adding separate business models by supplying to other brands, once a brand is established.
· Cold Chain: A lack of development and limited presence of players trouble the cold chain segment in India, translating into high costs of distribution. However, with the growth of the frozen dessert/ice cream market, cold chain infrastructure will also need to develop, to meet the heightened requirements of players. It is anticipated that many regional players will emerge in the next few years. While cold chain in India is a highly capital-intensive market, the widening gap between demand and supply presents a lucrative market ready for the entry and growth of cold chain companies.
Back-end Investments - Indian food services market
|Year Invested||Investor||Company||Deal Amount (USD mn)|
|2012||IDFC Private Equity||Parag Milk Foods||28.2|
|2011||Standard Chartered Private Equity||Bush Foods Overseas Private Ltd||20|
|2011||SAIF Partners||Manpasand Beverages||10|
|2007||Orkla Group||MTR Foods Ltd||80|
|2012||IDFC||Staragri Warehousing and Collateral Management Ltd.||27.3|
(Source: India Food Services Report, 2013, NRAI)