New Silk Route (NSR), a private equity firm managing $1.4 billion assets, is investing Rs 360 crore in Coffee Day Resorts, part of the Coffee Day group, for an undisclosed equity stake.
Coffee Day Resorts, an infrastructure firm floated by the Coffee Day group, is also the promoter of Cafe Coffee Day (CCD) outlets. Coffee Day Resorts, which has cross-holdings across group companies, will utilise the funds to set up a few resorts, to increase Cafe Coffee Day outlets and also to develop an infotech special economic zone (SEZ) near Bangalore.
Jacob Kurian, partner, NSR India, told FE: ?We cannot disclose the exact percentage of equity at this point of time. But it will be a significant minority stake in Coffee Day Resorts, which will be less than 30%.?
?Coffee Day recently ventured into the resorts business and is in the process of developing three resorts in Karnataka, which will be scaled up to 10 over a period of time. Apart from this, the group is involved in increasing CCD outlets from the current 915 to 2,000 in the next three years and is also developing an IT SEZ near Bangalore. The proposed funds will be utilised for expansion of other companies as well as on its own resorts, he added.
?Ours is a long-term investment and given their brand equity and niche areas, we expect much better realisation as and when we exit,? Kurian added.
?Of the $1.4 billion, India alone accounts for 70-80%. We have invested about Rs 500 crore in 12 firms and are looking at better opportunities,? he said. Coffee Day Resorts chairman VG Siddhartha said: ?We are excited to partner with New Silk Route. This investment will be used across various current and future businesses of the group i.e. Cafe Coffee Day, luxury resorts and infrastructure.?