Food service firm Jubilant Foodworks Ltd (JFL) is investing Rs 92 crore in Barbeque-Nation Hospitality Ltd (BNHL) for a 10.76 per cent equity stake as it looks to diversify into different cuisines.
JFL, which operates fastfood chains Domino’s Pizza and Dunkin’ Donuts in India, had only recently announced its foray into the biryani business.
“The company has entered into a share subscription agreement to acquire equity shares and a restated shareholders’ agreement to regulate the rights and obligations of BNHL’s key shareholders,” Jubilant Foodworks said in a regulatory filing on Thursday.
BNHL operates Barbeque Nation (BBQ), an Indian cuisine casual dining brand, which introduced the concept of live grilling of kebabs to the Indian market. It owns and operates 138 Barbeque Nation restaurants across 73 cities in India and seven international Barbeque Nation restaurants as on November 30, 2019.
It also has a presence in the Italian cuisine segment under the brand Toscano.
Jubilant Foodworks chairman Shyam S Bhartia and its co-chairman Hari S. Bhartia said the proposed investment will create value for the company’s shareholders.
Shares of Jubilant Foodworks on Thursday ended at Rs 2,790.05, a gain of Rs 108.35 or 4.04 per cent over its previous close. Its shares have risen 144 per cent from its 52-week low struck in March.
The food service company had recently said that it will sell biryani under the brand Ekdum!, with prices starting from Rs 99. In order to drive convenience and ease of ordering, it plans to offer an easy-to-use app, mobile website and desktop website.
JFL has a network of 1,264 Domino’s Pizza restaurants across 281 cities and also has the exclusive rights to develop and operate Domino’s Pizza brand in India, Sri Lanka, Bangladesh and Nepal. It also has exclusive rights for developing and operating Dunkin’ Donuts restaurants in India and has 26 Dunkin’ Donuts restaurants across 8 cities in the country.
The company had earlier entered into the Chinese cuisine segment with its first owned restaurant brand “Hong’s Kitchen” and has also forayed into the ready-to-cook segment with a range of sauces, gravies and pastes under the recently launched brand “ChefBoss”.
It will initially start with three restaurants in Gurgaon for delivery, takeaway and dine-in, with more restaurants planned to open in the national capital region over the next few months.