Newstrack

SRPL on a major expansion spree

To become 100-restaurant company

Joy Roy Choudhury - Kolkata

Speciality Restaurants (SRPL), the country's largest chain of fine dining eateries of reputed brands is on a major expansion spree. The group plans to invest around Rs 200-250 crore through both, the organic and inorganic routes to become a 100-restaurant company in the next one-and-a-half years up from its present strength. By the end of 2008-09, the company has a target of setting up an additional 17 outlets across the country and thereby taking its tally to 50 fine-dining restaurants.

Elaborating on the same, Anjan Chatterjee, chairman & managing director, SRPL said, "The idea is not only to add outlets in cities where we already have a presence, but also to make SRPL's presence felt in other small towns and with firm plans of back integration in the form of building infrastructure in terms of trained manpower and food processing".

The expansion plan of the group also aims to hit the national scenario with upcoming ventures, including additional outlets in cities like Delhi and Bangalore, as well as outlets in Chandigarh, Jaipur, Indore, Guwahati and Bhubaneswar. However, at present, apart from the existing Oh! Calcutta outlet in London and a Chinese restaurant in Beijing which is likely to open its doors before the Beijing Olympics, it has no immediate plans to open any more outlets abroad.

Chatterjee said he is very bullish about inorganic growth. "We are in talks with a few small-format operators in Italian, Mediterranean or Continental cuisine who are not in a position to scale up business. We would like to have controlling stakes in these businesses," Chatterjee said.

Recently, SAIF Partners, the leading Asian Private Equity firm had acquired a 20 per cent stake in SRPL for Rs 90 crore. SRPL is expecting a turnover of Rs 200 crore by the end of 2008 and around Rs 350 crore by 2011, when it plans to raise money through a public issue. Chatterjee said till then, our expansion will be funded through a mix of debt and equity.

Continuing further, he said, "The deal will not only bring in a global perspective, promoting allied businesses in the sector, but it will also lead the way to institutionalise the restaurant business in India.

Chatterjee believes that trained manpower too will be the key to achieve this growth level and so SRPL is setting up two Speciality Catering Colleges to train young fresh talents and groom them for the hospitality industry.

The young graduates will be industry-ready and absorbed in the SRPL Group. The first Speciality Catering College is coming up at Salt Lake in Kolkata and is likely to become fully operational by the end of this year, while the second one will come in at the industrial town of Durgapur in Bengal.

Currently, SRPL owns popular brands like Mainland China, Oh! Calcutta, Sigree and HAKA.