L Catterton to invest $30 mn in southern restaurant chain Nandhana Foods

Investment firm L Catterton has signed a definitive agreement to invest in Nandhana Foods, a prominent restaurant chain specializing in South Indian cuisine. The exact amount of the investment has not been disclosed. According to a press release, this investment will bolster Nandhana Foods' growth trajectory and enable the company to achieve greater scale by leveraging L Catterton's industry expertise and operational prowess.

Vikram Kumaraswamy, a partner at L Catterton, commented, "Nandhana Foods' founding family has built a distinctive and scalable business with a strong consumer proposition and attractive unit economics. It has expanded the business in a disciplined manner and ensured that its restaurants remain anchored in high quality and consistency."

He further stated, "We believe there is significant headroom for additional growth by further deepening and broadening its presence in South India and penetrating other markets. There is a clear path for prudently ramping up expansion." Established in 2004, Nandhana Foods operates two brands, Nandhana Palace and RNR, and has 25 outlets in Bengaluru and Chennai.

The company's founder and managing director, R Ravichandar, expressed delight at partnering with L Catterton, a firm known for creating value for its portfolio companies globally. He added, "The firm has a profound grasp of our organisational DNA and an intricate understanding of the restaurant industry." L Catterton, which has substantial experience in building restaurant brands worldwide, has previously invested in approximately 30 restaurant businesses.

Its current and past portfolio includes Dishoom, P.F. Chang’s, Velvet Taco, Baja Fresh, Cheddar’s Scratch Kitchen, Cigierre, HUGE, Impresario, and Mendocino Farms. L Catterton, founded in 1989, manages around $40 billion in equity capital across multi-product platforms specializing in private equity, credit, and real estate. Over its history, the firm has made over 300 investments in consumer brands worldwide.