New Silk Route buys 51% stake in Mumbai's premium cafe chain Moshe's

South East Asia focused private equity firm New Silk Route,which last year invested Rs 200 crorein South Indian vegetarian restaurant and fast food chain - Adiga’s for a minority stake, isnow set to buy into South Mumbai’s upscale cafe and restaurant chain Moshe’s as part of its effort to build a platform of Indian food and beverage companies in which it would buy controlling stakes.

According to a report in the Times of India ,New Silk Route will buy an over 51 percent stake in Moshe’s, which currently runs 10 premium Mediterranean cafes and restaurants in Mumbai.

The 43-year old founder, Moshe Shek, will retain a small stake and continue to manage the business.

A parent investor in Cafe Coffee Day, the Moshe’s deal marks New Silk Route’s third investment in the food and beverages space .

The PE firm has also set aside $100 million to invest in a portfolio of four food and beverage firms though a holding firm that would take a controlling stake of 51 percent in mid-sized promoter-led firms.

NSR also doesn’t make investments in businesses unless it can provide relevant CEO or COO level experience.

It has changed five of the top management positions in Adigas since its investment.

NSR’s other key investments in India include Resorts and Hotels, 9X Media, Capricorn Hospitality, KS Oils, Ascend Telecom Infrastructure, Reliance Infratel and VRL Logistics.

The Indian food service industry is currently valued at $14 billionand according to reports by Rabobank and Assocham India, India’s quick service restaurant segment is worth $60 million, which is expected to grow at an annual rate of 30 percent till 2015.

Little wonder that such restaurants have attracted a lot of investor interest in the past two years.Apart from NSR, Everstone Capital, India Equity Partners, Saif Partners have a direct exposure in the food sector.

In October 2012, Sequoia pumped in $5 million in Faaso’s -a Kebab and wraps chain, while in August 2012 India Equity Partners invested 35 million in Sagar Ratna, a Delhi-based South Indian restaurant chain.

Even CX Partners picked up a minority stake in causal dining chain Barbeque Nation for Rs 110 crore earlier this year, while Bangalore-based QSR Mast Kalander got a Rs 32 crore shot in the arm from Helion Venture Parnters and Footprint Ventures.