Kotecha Capital takes 49% bite of US Pizza
Private equity firm Kotecha Capital has picked up 49% stake in the Bangalore-based US Pizza.
By Shruti Sabharwal, |
BANGALORE: Private equity firm Kotecha Capital has picked up 49% stake in the Bangalore-based US Pizza. While the exact valuation of the equity deal is not known, it is believed Kotecha will now invest Rs 500 crore, including debt, over a period of time as the fast food chain plans to expand to 1,000 outlets across India by 2011. The company will also be opening 40-50 outlets in European countries such as Norway, Sweden, Germany and France.
���We will expand in two phases, which will be funded by Kotecha Capital. In the first phase till 2009, Kotecha will pump in Rs 150 crore and in the second phase it will put in the remaining Rs 350 crore by 2011.
After five years, they may exit by going in for an initial public offer or selling the stake to someone else,��� US Pizza���s MD Akbar Khwaja said. US Pizza, which opened its first outlet in India in 1994, will have around 65 outlets in 31 cities by the end of the fiscal.
They are now planning to enter a new city every month as they are looking to tap new markets by entering tier II and tier III cities. These cities do not have too many fast-food joints at present and this move will give the company first-mover advantage.
Simultaneously, they will start exporting pizza base and pizzas to European countries from April for which they have already set up a factory. By the end of the year, they will set up outlets in Europe. ���We will first go to Sweden, Norway and Denmark and look at Germany and France after that,��� Mr Khwaja said.
In the next five years, they are aiming at opening 40-50 outlets in these countries. US Pizza reported revenues of Rs 35 crore last fiscal and expects to close this fiscal with a turnover of Rs 50-55 crore. By 2011, they are expecting to grow almost ten-fold with a turnover of Rs 500 crore.
Meanwhile, the company is also planning to innovate with their stores by adding entertainment options in their flagship outlets and rolling out services like chocolate delivery, wherein customers can call US Pizza and ask them to deliver chocolates to friends.
���We will expand in two phases, which will be funded by Kotecha Capital. In the first phase till 2009, Kotecha will pump in Rs 150 crore and in the second phase it will put in the remaining Rs 350 crore by 2011.
After five years, they may exit by going in for an initial public offer or selling the stake to someone else,��� US Pizza���s MD Akbar Khwaja said. US Pizza, which opened its first outlet in India in 1994, will have around 65 outlets in 31 cities by the end of the fiscal.
They are now planning to enter a new city every month as they are looking to tap new markets by entering tier II and tier III cities. These cities do not have too many fast-food joints at present and this move will give the company first-mover advantage.
Simultaneously, they will start exporting pizza base and pizzas to European countries from April for which they have already set up a factory. By the end of the year, they will set up outlets in Europe. ���We will first go to Sweden, Norway and Denmark and look at Germany and France after that,��� Mr Khwaja said.
In the next five years, they are aiming at opening 40-50 outlets in these countries. US Pizza reported revenues of Rs 35 crore last fiscal and expects to close this fiscal with a turnover of Rs 50-55 crore. By 2011, they are expecting to grow almost ten-fold with a turnover of Rs 500 crore.
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Meanwhile, the company is also planning to innovate with their stores by adding entertainment options in their flagship outlets and rolling out services like chocolate delivery, wherein customers can call US Pizza and ask them to deliver chocolates to friends.
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