United to launch fast food chains India, Sweden, Norway

The Economic Times, 4 July 2008
Our Bureau HYDERABAD
UNITED Restaurants, which owns the US Pizza brand plans to roll out a fast food restaurant chain in the country by the end of this year. It will also introduce the new brand in Sweden and Norway.
The restaurant chain will serve vegetarian food in India and nonvegetarian food overseas. The company has also formed a joint venture with a Swedish company for setting up the chain overseas.
“We plan to set up the restaurant chain in the country by the end of November. We have also formed a joint venture — Eastern Food Delicacy — with Sweden-based Kaleidoscope New Concepts Opportunities AB. While United Restaurants will hold 51% stake in the JV, the Swedish company will have a 49% stake. Our aim is to introduce Indian fast food to Scandinavian countries and by December we will enter Sweden and Norway through the joint venture,” said Akbar Khwaja, managing director of United Restaurants.
The Bangalore-based company expects to invest Rs 25 crore to set up fast food restaurants in the country. “The money will be raised through a combination of equity and debt in the ratio of 1:1.5. Besides, internal accruals will also help us meet fund needs,” he said.
The company will require $0.5 million for entry into Sweden and Norway. Kotecha Capital had recently picked up 49% stake in United Restaurants. “We have a five-year agreement with them. According to this, Kotecha will help us fund our expansion plans. So far, it has invested Rs 15 crore in the company,” he said. United Restaurants on Thursday also introduced its new sandwich brand ToastyZ in India, with its first store in Hyderabad at an investment of Rs 30 lakh.