HYDERABAD: Food Krafters and Services LLP (FKS) on Thursday acquired city-based food retailer Hyderabad House (HH) for an undisclosed sum.
FKS is promoted by Khalil Ahmed, co-founder of Shantha Biotech, now part of the French vaccine major Sanofi.
Following the acquisition, brand Hyderabad House will cease to exist. FKS will embark on a rebranding exercrise soon, rope in professional chefs and traditional master chefs and offer its traditional Hyderabadi ‘Kacche Ghost ki Biryani’ and other Deccan delicacies in a semi Quick Service Restuarant (QSR) format.
The deal comes at a time when muli-nationals QSR players like Pizza Hut, Kentucky Fried Chicken (KFC), McDonald’s and Dominos are aggressively ramping up operations. Besides, several startups, aided by e-commerce, are venturing into the food delivery and retailing business.
According to Euromonitor, the size of the Informal Eating Out (IEO) industry in India is over $74 billion. Of this, the QSR segment alone is pegged at $13 billion and growing at 18 per cent per annum.
FKS will open a flagship outlet in the city and has plans to open 50 more across the country involving `35 crore investment in the next two years. This expansion will be through both a combination of company-owned and franchisee route. “The deal would serve Food Krafters establish a firm foothold in the food retail industry. Hyderabad House fits well in our scheme of things and we intend to grow and expand using this brand name,” said Ahmed.
According to Ahmed, FKS will strengthen HH’s catering business by offering on-site services for weddings, corporate events, conferences and other private banquets alongside offering more than 1,000 new and expanded items on the menu in addition to the “mehmaan nawaazi” service.