Max Ventures & Industries makes its maiden private equity investment – Rs 335 Million in Azure Hospitality
Marks MaxVIL’s first big venture after the demerger of Max India
12th May 2016, New Delhi
Max Ventures & Industries Limited (MaxVIL), a part of one of India’s leading multi-business conglomerates, the Max Group, today announced its intent to invest in Azure Hospitality Pvt. Ltd., which owns and operates Mamagoto, a mid-scale casual dining restaurant chain and Speedy Chow/Roll Maal, a quick service restaurant (QSR) format for Indian & Chinese street food and an Institutional Catering Service.
This will be the first investment by MaxVIL, a holding company formed recently through a three way demerger of the erstwhile Max India Ltd, to provide the latter’s investors with specific and undiluted access to diverse lines of businesses, unlock shareholder value and enable sharper focus on each operating business.
Established in 2009 by Kabir Suri and Rahul Khanna, Azure Hospitality is a leading hospitality business chain offering South East Asian cuisine in a differentiated format. This is the second round of funding for the company. MaxVIL will be co-investing in the second round with Goldman Sachs, the key investor in the first round.
The Indian food industry is estimated at USD 100 Bn. Within this, the organised sector is expected to grow at 16% CAGR to USD 28Bn, in the next 5 years.
MaxVIL’s objective is to address the wider world of business opportunities in India and abroad. Apart from being the holding company for Max Speciality Films, an innovation leader in the Speciality Packaging Films business, the Company also serves as the Group’s entrepreneurial arm to explore the ‘wider world of business’, especially taking cues from the economic and commercial reforms agenda of the present Government and the positive initiatives of the Prime Minister, including ‘Make in India’, ‘Skill India’, ‘Digital India’, among others.
MaxVIL’s Investment Vertical, a fully owned special purpose vehicle, will facilitate Intellectual & Financial Capital to promising and proven early-stage organizations across identified sunrise sectors. The proposed investment vertical would specifically target strategic growth sectors such as Hospitality, Food & Beverages, Healthcare, Technology-based Financial Services, Education, Real Estate and Senior Living. Its investment model will be a hybrid of accelerators and venture funding, providing both mentoring and growth capital for the organizations it invests in.
Commenting on the focus of MaxVIL, Analjit Singh, Chairman Emeritus & Founder, Max Group, said, “Max Ventures & Industries was always planned as a fertile place for ideas, new projects and investments. In that sense, MaxVIL closely resembles the diversified businesses model that Max followed in its early years, and imbibes a similar entrepreneurial spirit as well.”
Highlighting the significance of this investment, Max Group President, Rahul Khosla said, “This investment marks a key milestone for the Group as it directly bears out the strategic intent behind the demerger, of allowing the Group to explore newer avenues through MaxVIL, while ensuring unwavering focus on our existing businesses through the other two holding companies, Max Financial Services and Max India.”
Mohit Talwar, Vice Chairman, MaxVIL added, “The Investment vertical under MaxVIL would specifically target leading growth sectors within India, which also happen to be aligned with the Group’s strategic businesses. We will act not only as a Financial Partner, but also a Mentor to these early growth stage companies. This development comes at an opportune time as we have now obtained FIPB approval for the listing of MaxVIL and have initiated listing formalities. MaxVIL is expected to be listed on the stock exchanges by early June.”
Explaining the rationale behind the investment, Sahil Vachani, MD, MaxVIL, said, “Within the sectors that we are actively considering for investment, we particularly favored Azure Hospitality because of the vision of its founders, their values , the scale they have demonstrated and the potential for profitable growth. We are also pleased to partner the existing investor, Goldman Sachs, who is investing further at this stage. The strong fundamentals of Azure coupled with huge growth prospects within the sector make this an exciting opportunity for MaxVIL.”
The intended investment will be subject to due internal and regulatory clearances and approvals.
About Max Ventures & Industries Limited
Max Ventures and Industries, is the holding company for Max Speciality Films, an innovation leader in the Speciality Packaging Films business. In addition to manufacturing, the Company also serves as the Group’s entrepreneurial arm to explore the ‘wider world of business’, especially taking cues from the economic and commercial reforms agenda of the present Government, including ‘Make in India’, ‘Skill India’, ‘Digital India’, among others.
MaxVIL will be shortly listed on both the Bombay Stock Exchange as well as the National Stock Exchange.
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