Hotline: 1800 102 2007
X
Search Business Opportunities
franchise 2015-07-23

Movenpick may dilute 10 per cent in next few years

The group is also planning to invest above $5 million to purchase the necessary infrastructure to build the Movenpick business in India.

By edit@franchiseindia.net
Movenpick may dilute 10 per cent in next few years

Nestle’ super top grade ice-cream brand Movenpick is planning to invest upwards of $5 million to build cold chain infrastructure and logistics in India.

The group has re-entered Indian Market in early 2014 by signing a master-franchisee with Star Foods Speciality for the third time since setting up its subsidiary back in 2000.

Dennis Korrey, Regional Business Head, South Asia, Movenpick, said, “In the past, there were issues like logistics and infrastructure in the Indian market due to which we had to withdraw our operations. Now, we will invest above $5 million to purchase the necessary infrastructure to build the Movenpick business here.’’

Temporarily, even the MNCs Indian master franchise, Star Foods Speciality is hoping to raise money by diluting 10 per cent stake in the company to PE funds. “With single brand retail we are allowed to dilute 49 per cent stake in the company. We may dilute 10-15 per cent stake to a PE fund in next 2-3 years if required,’’ said Tarun Sikka, Managing Director, Star Foods Speciality.

Sourcing Movenpick directly from Switzerland, the super premium ice-cream attracts steep import duties at 23 per cent in India.

“Unlike in countries like Australia with import duties for premium ice-cream at 1 per cent, duties in India are a lot more at 23 per cent. However, the relatively cheap cost of labour compensates for the high import duties making Movenpick’s pricing on par with other countries,” added Koorey.

Further, Movenpick is now positioning itself as a ‘dessert’ with its cafes selling waffles, pancakes and sundaes.

It has launched its fourth cafe in Mumbai recently; after opening outlets in Delhi, Chennai and Bengaluru.

Comment
Related opportunities
  • About Us: Founded in 2013, Juana Technologies Pvt. Ltd. grew as..
    Locations looking for expansion Delhi
    Establishment year 2013
    Franchising Launch Date 2017
    Investment size Rs. 2lac - 5lac
    Space required -NA-
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
  • Casual dine Restaurants
    About:The first Kenny Rogers restaurant was opened in coral spring,..
    Locations looking for expansion New Delhi
    Establishment year 1991
    Franchising Launch Date 2017
    Investment size Rs. 2 Cr. - 5 Cr
    Space required 1200 - 2000 Sq.ft
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater South Delhi New Delhi
  • Quick Service Restaurants
    About Us: Pizza is easily recognised food item in the world,..
    Locations looking for expansion Gujarat
    Establishment year 2012
    Franchising Launch Date 2018
    Investment size Rs. 20lac - 30lac
    Space required 150
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Ahmedabad Gujarat
  • About Us:  MBTA (Mahesh Bhupathi Tennis Academy) was founded in 2006,..
    Locations looking for expansion Karnataka
    Establishment year 2006
    Franchising Launch Date 2017
    Investment size Rs. 50lac - 1 Cr.
    Space required 2000
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Bangalore Karnataka
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities
More Stories

Free Advice - Ask Our Experts