Hotline: 1800 102 2007
X
Search Business Opportunities
Sep, 21 2015

Travel Food Services raise Rs 230 crore for expansion

"The company is rapidly expanding its presence in the travel retail space and they are talking to a couple of private investment bankers to scout for PE investors to fund this expansion," said the person privy to the development.

Travel Food Services (TFS), a subsidiary of Mumbai-based K Hospitality Corp, is looking to raise $30-35 million (about Rs 197 crore - Rs 230 crore) through private equity (PE) firms to fund its expansion plans, said a person aware of the development.

TFS, which has presence in the travel retail space, operates restaurants, cafes, food courts and lounges. The company operates food and beverage outlets in Indian airports such as New Delhi, Mumbai, Chennai and Kolkata apart from the Muscat and Salalah International Airport overseas. Recently, the company won the contract to operate food and beverage outlets at Mangalore airport as well.

Last year, the company got into lounge management business and opened lounge operations at Terminal 2 of the Chhatrapati Shivaji International Airport in Mumbai.

"The company is rapidly expanding its presence in the travel retail space and they are talking to a couple of private investment bankers to scout for PE investors to fund this expansion," said the person privy to the development, who did not wish to be identified.

TFS manages partner and proprietary brands including Smoke House Bar & Cafe, KFC, Domino's. The Coffee Bean and Tea Leaf, Cafe Coffee Day and Haagen-Dazs are among the others across the country's airports. It also has partnerships with Gate Gourmet for in-flight catering and with Lagardere Travel Retail for duty free and news and books (through the Relay brand).

In an email response to ET's query on fund raising, Varun Kapur, director of TFS, said, "As part of our strategic growth and expansion process, TFS is in the process of exploring various opportunities to raise funds at an appropriate time in the future."

Early this year, the company also won the contract to develop food courts at Pune and Vishakhapatnam railway stations. With the central government's recent decision to modernize 400 railway stations in the country, TFS is betting big on this sector.

During an earlier interaction with ET, Kapur had said the company has lined up investments worth Rs 200 crore to expand its presence across airports and railways over the next 2-3 years. "We currently get 50% of our business from travel retail and the revenue from this segment has grown 50% year-on-year in the last three years," Kapur had told ET. TFS currently operates over 170 outlets at airports across the country and overseas, catering to over 90 million passengers.

K Hospitality Corp, the parent company of TFS, owns and manages brands like Copper Chimney, Irish House, Bombay Brasserie and Serafina apart from having a presence in banqueting and corporate food service business.

Travel industry experts say that the burgeoning Indian middle class indicates a strong growth potential for the food service brands in the travel retail sector.  

Comment
Related opportunities
  • Laundry & Dry Cleaning
    About U Clean: At UClean, we are building India's first organized..
    Locations looking for expansion New Delhi
    Establishment year 2016
    Franchising Launch Date 2016
    Investment size Rs. 10lac - 20lac
    Space required 350
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater South Delhi New Delhi
  • Others Food Service
    In 2007 Xotik Frujus Pvt. Ltd., was incorporated and has ever since..
    Locations looking for expansion Maharashtra
    Establishment year 2007
    Franchising Launch Date 2008
    Investment size Rs. 10lac - 20lac
    Space required 600
    Franchise Outlets -NA-
    Franchise Type -NA-
    Headquater Kandivali east Maharashtra
  • Video Game Centres
    About Us: VRUnreal was established in 2017, offering the first-fully equipped..
    Locations looking for expansion Maharashtra
    Establishment year 2017
    Franchising Launch Date 2018
    Investment size Rs. 20lac - 30lac
    Space required 500
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Mumbai Maharashtra
  • Others Food Service
    About Us: Punjabi Chaap Corner well known as PCC founded in..
    Locations looking for expansion Delhi
    Establishment year 2014
    Franchising Launch Date 2012
    Investment size Rs. 5lac - 10lac
    Space required 200
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater New delhi Delhi
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