In a significant move within India's bustling food services sector, Dubai-based private equity firm Pulsar Capital is in advanced discussions to acquire the popular Bengaluru-based Andhra cuisine restaurant chain, Nandhana Palace. The deal, valued between $50 million and $60 million (approximately ₹449-538 crore), is expected to provide a complete exit for the chain's promoters and could be finalized in the coming weeks.
Strategic Consolidation in the Food Sector
This potential acquisition is not an isolated transaction but a key part of Pulsar Capital's broader strategy to build a formidable food and restaurant platform in India. The firm plans to achieve this through the consolidation of multiple dining assets under a single umbrella. Led by former TPG executive Vish Narain, Pulsar has a notable portfolio of consumer-facing brands in India, including Biryani by Kilo and Blue Tokai Coffee. Earlier this year, the firm also partnered with PJP Investments to launch the American pizza chain Papa John's in the Indian market.
The talks with Nandhana Palace underscore a accelerating trend of investor interest in mid-sized, profitable dining brands. This momentum is supported by expectations of a consumption boost following recent GST rate cuts and a sustained flow of early-stage funding into consumer brands. These factors are creating ripe conditions for platform plays and inorganic growth, prompting successful brands in the ₹100-crore revenue bracket to seek partners for their next phase of expansion.
Nandhana Palace: A Flavorful Success Story
Founded in 2004 by Ravichandar Ramaswamy, Nandhana Palace has grown into one of the most prominent names serving authentic Andhra-style cuisine. The chain, which started with a focus on Bengaluru, has expanded to multiple outlets in Chennai as well. Ramaswamy's daughters later joined the business, aiming to build a brand that offers "tasty yet healthy food" deeply rooted in the culture and flavours of Andhra Pradesh.
Operating under Nandhana Foods Pvt. Ltd, the group runs 27 outlets across various formats, from fine dining to spaces for indoor parties. The company's financial performance has shown robust growth. According to filings sourced from Tofler, the chain reported a consolidated revenue of ₹241 crore in FY24, a significant jump from ₹188.3 crore in FY23. Profits also saw a dramatic rise, reaching ₹12.3 crore in FY24 compared to ₹3.9 crore the previous year.
A Broader Trend of Platform Building
The move by Pulsar Capital mirrors a larger wave of consolidation sweeping across India's organized food market. Other investors and strategic players are actively pursuing similar platform strategies. For instance, Temasek-backed Haldiram's is scouting for bolt-on acquisitions to strengthen its presence in South India. In the desserts segment, private equity firm Chryscap has earmarked $200 million to build a platform anchored by its acquisition of Theobroma, and is now evaluating assets in frozen desserts and ice cream.
This flurry of activity is set against the backdrop of a massive and growing food services market. A Redseer report estimates India's food services market was worth about $80 billion in 2024 and is projected to grow at a compound annual rate of 10-11% over the next five years. Growth is being propelled by the surge in online food delivery and a consumer shift towards organized dine-in formats.
As the discussions between Pulsar Capital and Nandhana Palace reach their final stages, the deal highlights the increasing appeal of established, regional culinary brands to institutional investors looking to tap into India's evolving consumption story.
