- October 22, 2019 / 4 min readThis will be one of the largest investments in a local restaurant chain brand in India.
CX Partners, a private equity firm, is acquiring the majority stake (50.1%) in Dindigul Thalappakatti Biriyani for Rs 260 crore. This will be one of the largest investments in a local restaurant chain brand in India.
The deal will value the iconic Tamil Nadu restaurant close to Rs 600 crore. Thalappakatti Biriyani started with just one outlet in a small town in 1957.
The restaurant will use the fresh capital to expand in metros across India and also overseas. Currently, it has 64 outlets, including 7 overseas in France, Singapore, US, Dubai, and Sri Lanka.
D Nagasamy, Owner of Dindigul Thalappakatti Biriyani, said, “We are not attracting only Tamil diaspora, but all South Indians. The US is the biggest market because our only restaurant in Milipitas in California generates over Rs 2 crore in monthly revenues.”
The brand further aims to take the number of outlets to more than 200 in India with a focus on South India, apart from metros across the country such as Pune, Delhi, and Kolkata. The restaurant chain also eyes launching over 25 outlets overseas with a focus on Dubai and Sri Lanka, besides the US.
Jayanta Basu, Managing Partner, CX Partners, stated, “We spent time with them and saw that they have a strong and differentiated brand recall in core markets, especially in Tamil Nadu and now in Karnataka with Bengaluru.”
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