L Catterton Invests $30 Million in Nandhana Foods
L Catterton, the top global investment firm focused on consumers, has finalized an agreement to invest in Nandhana Foods, a prominent restaurant group renowned for its South Indian cuisine.
The funding will assist Nandhana Foods in its upcoming growth stage and allow the group to reach larger scale by utilizing L Catterton’s industry knowledge and operational skills.
L Catterton has put in $30 million (approximately Rs 288 crore) for a minority stake in the company in the double digits.
South Indian food is among the biggest parts of India's growing food service industry. Driven by secular trends like the growing per capita spending on dining out and food delivery, along with more consumption occasions, the segment is anticipated to experience robust growth led by prominent brands such as Nandhana Foods.
For more than 30 years, Nandhana Foods has been providing genuine South Indian dishes, emphasizing taste, authenticity, quality, freshness, and a diverse menu. Along with its distinctive and adaptable spice profile, this commitment has allowed it to develop a devoted customer following.
Vikram Kumaraswamy, partner at L Catterton, noted that the founding family of Nandhana Foods has created a unique and scalable business model with a compelling consumer appeal and favorable unit economics.
He stated that it has grown the business methodically and made certain that its restaurants maintain a focus on high quality and consistency.
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He adds that there is considerable potential for further growth by expanding and enhancing its presence in South India and exploring other markets.
Dr. R Ravichandar, founder and Managing Director of Nandhana Foods, stated that L Catterton has a deep understanding of the company's core values and a complex insight into the restaurant sector.
“We are excited about tapping into its astute insights and proven know-how to strengthen our operations in line with our commitment to providing high-quality food and service to our customers,” he adds.
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L Catterton has made investments in nearly 30 restaurant ventures to date, with both current and former portfolio companies in the sector such as Dishoom, P.F.
Earlier, L Catterton announced on Friday that it has invested in Healing Hands Clinic, a healthcare chain specializing in proctology, marking its initial investment in India's specialty outpatient sector as the need for anorectal treatment increases.
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The agreement, with financial specifics kept confidential, will provide Healing Hands with L Catterton’s worldwide expertise in developing consumer healthcare enterprises and assist its ambitions to grow beyond its existing network of 36 clinics in 14 cities.