Hotline: 1800 102 2007
X
Search Business Opportunities
Dec, 14 2017

Jitu Virmani Buys Hardrock Cafe's India Operator

JSM has annualized revenue of about Rs 120 crore but has seen several large format outlets of Hard Rock California Pizza Kitchen and Shiro struggle in recent past

Billionaire property developer Jitu Virwani, promoter of the country’s largest business parks Embassy Group, has acquired controlling interest in JSM Corp, a Mumbai-based F&B company that operates Hard Rock Cafe, Panda Express, California Pizza Kitchen and Shiro among others. Virwani’s investment is seen as a bail-out after the company’s efforts to raise fresh capital failed, pushing it into distress zone.

Virwani partnered with one of JSM’s founders Sanjay Mahtani to snap up shares held by Premji Invest, an investment vehicle of Wipro chairman Azim Premji, and other exiting investors including co-founder Jay Singh. Virwani and Mahtani together now hold 95% in the company leaving the rest with a few small investors. Virwani’s personal investment gives him an individual 62% holding.

Jitu Virwani said “I have acquired slightly over 60% stake in the company, buying shares from Premji Invest and one of the co-founders. Company suffered from bulging corporate expenses and aggressive expansion after attracting private equity investments. “I see big opportunity to expand Panda Express (a US headquartered popular Chinese kitchen with revenue topping $2 billion) across malls, business parks, college campuses in India. I am not planning anything adventurous on the rest of the businesses”.

Premji Invest, which had pumped in $25 million for an initial 22% five years ago, is said to have taken a huge write-off as “aggressive expansion of super-sized stores” in a highly competitive fine-dining industry proved to be the undoing. JSM also went on a “brand grab” as it signed up multiple international brands even as the consumer sentiments remained sluggish. Premji’s investment had happened at a post money valuation of around Rs 500 crore, while the latest sale was struck at possibly one-fourth of that figure.

JSM has annualized revenue of about Rs 120 crore but has seen several large format outlets of Hard Rock, California Pizza Kitchen and Shiro struggle in recent past. This prompted the company to re-size the outlets even as it prepared to launch Panda Express in the country. The company operates other F&B brands like frozen dessert chain Pinkberry, Big Kahuna, Ginger Tiger and Asilo in Mumbai.

Virwani’s Embassy Group operates large technology business parks and has an equal joint venture with Blackstone Group, which manages rental income earning office space of more than 30 million sqft.

Comment
Related opportunities
  • Womens Wear
    About: Founded in 2014, Varanga is a progressively - growing fashion..
    Locations looking for expansion Delhi
    Establishment year 2014
    Franchising Launch Date 2018
    Investment size Rs. 20lac - 30lac
    Space required 400
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
  • Mr. Bean's Pizza started its operations in Jaipur in 2013...
    Locations looking for expansion Rajasthan
    Establishment year 2013
    Franchising Launch Date 2013
    Investment size Rs. 10lac - 20lac
    Space required 330
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Jaipur Rajasthan
  • Quick Service Restaurants
    About Us: 95 Pasta &Pizza, striving to create a brand with..
    Locations looking for expansion Maharashtra
    Establishment year 2012
    Franchising Launch Date 2015
    Investment size Rs. 10lac - 20lac
    Space required 300
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Pune Maharashtra
  • HR & Recruitment
    Coppergate - a specialist headhunting, Staffing & Education Company looking..
    Locations looking for expansion Maharashtra
    Establishment year 2007
    Franchising Launch Date 2008
    Investment size Rs. 50 K - 2lac
    Space required 01
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Mumbai City Maharashtra
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities