Creador enters India’s quick-service restaurant sector with US$73m investment in Sapphire Foods
09.08.21 / Author: Ahmad Naqib Idris
KUALA LUMPUR (Aug 9): Private equity firm Creador has announced a strategic investment of US$73 million (RM308.35 million) in Sapphire Foods India Ltd, one of the largest franchisee operators of YUM! Brands in the Indian subcontinent.
Sapphire Foods India currently operates a total of 437 KFC, Pizza Hut and Taco Bell restaurants in India, Sri Lanka, and Maldives, therefore marking Creador’s first foray into India’s fast-growing quick-service restaurant (QSR) sector.
The investment will be through a combination of direct investment into Sapphire Foods India and a secondary purchase of shares in the company, the private equity firm noted in a statement today.
“This is the ideal time to be investing in the Indian subcontinent’s burgeoning quick-service restaurant (QSR) industry.
“The pandemic has spurred a transformative change in consumer buying patterns, with consumers migrating from the independent food sector to internationally recognised brands like KFC, Pizza Hut and Taco Bell, which provide great tasting food, a strong emphasis on food safety and hygiene, and omni-channel accessibility,” said Creador founder and chief executive officer Brahmal Vasudevan.
He said QSR is the fastest-growing segment amongst food chain formats in India, where global QSR brands dominate.
“The QSR market in India has been growing at 19% during the last few years and eating out frequency is significantly lower at 1.5 to two times per person per month vs seven to nine times in other developed markets. The QSR market in India is expected to grow at 20-plus percent over the next four years.
“Sapphire Foods, with its combination of iconic brands that are well-loved by customers, strong focus on customer service, impressive track record and a strong management team is well poised to capture a significant share of the Indian food services market and we are very pleased to be able to partner with them as they scale up the business,” Brahmal added.
Edited by Joyce Goh