The niche players in the industry are setting global benchmarks in India; supply chains are augmenting; world-travelled chefs are opening restaurants in India further facilitating better standards and investors are promoting investment to a great degree.
In India, the food industry has emerged as a high-profit sector; it offers for value addition, particularly with the restaurant sector.
The total food production in India is likely to double in the next 10 years with the country’s domestic food market estimated to reach US$ 258 billion by end of 2015.
The Indian food processing industry accounts for 32 percent of the country’s total food market, 14 per cent of manufacturing GDP, 13 per cent of India’s exports and six per cent of total industrial investment. Indian food service industry is also expected to reach US$ 78 billion by 2018.
Indian restaurant brands are increasingly finding prime shelf space with brands like, Azure Hospitality Private Limited, Hector Beverages, Tablez, Food Jockeys etc getting investors thums up! Meanwhile, share of online food ordering has increased from single digits to a large number in food service business with players like FRSH, Bite Club, Box8, CyberChef trying to bridge the gap between a restaurant and a home cooked authentic food.
Azure Hospitality Private Limited, which has leading pan-Asian restaurant brand Mamagoto under its portfolio, has raised Rs 650 million from Goldman Sachs. The investment will be used to further expand Azure’s three restaurant brands throughout India and in select markets abroad.
Kabir Suri, Azure Co-founder and Director commented, “This landmark investment for our company will allow us to aggressively execute on our planned, strategic expansion. Access to Goldman Sachs’ extensive global network, insights and best practices will help strengthen our leading position in the Indian food & beverage (F&B) sector.”
Similarly, Hector Beverages which makes popular drink Paper Boat, has risen about Rs 183 crore in funding led by Belgian investor Sofina and China's Hillhouse Capital. Existing investors Sequoia Capital and Catamaran Ventures also participated in Hector's largest fundraise since its inception in 2010, according to which investment bankers estimates values the company at Rs 400 crore-Rs 500 crore or 2.5-4 times revenue. In general, Hector has raised Rs 250 crore.
"We will be good for the next 18 months for sure with this new fundraise," said Neeraj Kakkar, CEO and Founder, Hector Beverages.
Also, Tablez is also planning to invest around Rs 75-85 crore in opening 40 outlets in the country by next five years.
"When we look for brands to tie up with, we always look for those that are high in quality, have great value and are passionate about what they do; and Cold Stone Creamery ticks all the boxes for us," Shafeena Yusuff Ali, CEO, Tablez Food Company (TFC) told a national daily.
Furthermore, Food Jockeys, the Pune based company is planning to bring five-six new restaurant clubs over the next two years. The group which started Classic Rock Coffee outlet last year is optimistic to expand its presence pan-India with targeting at an investment of Rs 20-25 crore. Four Cocoberry Frozen Yogurt stores in Pune also runs by Food Jockeys, is the master franchisor for Classic Rock Coffee in India.
“We are the master franchisee for the Classic Rock Coffee brand. While two new outlets will be launched by the end of this financial year, four will come up by the end of FY’17,” shared Avinash Agarwal, MD, Food Jockeys.
Therefore, Indian food and restaurant scenario is growing fast. Now, people have travelled a lot and have better awareness about global food standards. There are niche players in the industry who are setting global benchmarks in India; supply chains are augmenting; world-travelled chefs are opening restaurants in India further facilitating better standards and investors are promoting investment to a great degree.