United Restaurants plans to raise Rs.60 crore

United Restaurants Ltd, operator of the US Pizza chain, wants to raise at least Rs.60 crore from private equity (PE) investors for an ambitious expansion. Its timing couldn’t have been better.PE firms have drummed up an appetite for specialty food chains in India this year, investing eight times more into the segment over 2010. Speciality food chains selling anything from burgers to vada pavs have been ramping up fast as more people eat out more often.Bangalore-based United Restaurants wants to increase the number of its outlets to 250 from 90 as it looks to expand within ia and enter new markets in the subcontinent and Africa. People love to eat Chinese Food .Chinese Restaurants in Delhi  have Great Business.IndReaching that target “would take us at least four years if we do it on our own. With capital infusion, it could be done in 18-24 months,” said managing director Akbar Khwaja.PE firms have invested $110.53 million (about Rs.in five speciality food firms this year, according to VCCEdge, which tracks venture capital and PE activity in the country, compared with $13.18 million in two firms in 2010. 500 crore)Deals this year include ICICI Venture’s $33 million investment in RJ Corp.’s Devyani International Ltd, which manages the KFC,  Pizza Hut  and Costa Coffee chains in India; and VentureEast Fund Advisors’ $4.7 million investment in Goli Vada Pav Pvt. Ltd last month.An outlet needs about three months to start making operating profits, said Santhosh Unni, chief executive of Costa Coffee (India). The company has 80 outlets and plans to add 60-100 annually in the next five years.Khwaja said United Restaurants has been profitable the past decade and revenue in 2010-11 rose 50% over the previous fiscal year. Click here to Know more about Connaught Place Restaurants  in Delhi. “These companies are growing fast. It’s a story based on convenience to customers, lifestyle demands.people want to eat out or order from home,” said Rajesh Srivastava, chairman and managing director of Rabo Equity Advisors Pvt. Ltd, an agriculture and food sector-focused PE fund.Investors have gained confidence in food chains, especially after Jubilant FoodWorks Ltd’s share sale in February last year. The company is the Indian franchise of the US’ Domino’s Pizza Inc.
Source      “livemint”