Published On:May 15 2019
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NeoMile Capital commits Rs. 100 crore to British Brewing Company.

NeoMile Capital, an advisor to global and domestic HNI and ultra HNI family offices, commits Rs 100 crore to British Brewing Company, a homegrown chain of English lounge bar. The company will use this capital to expand its presence across metros and tier I cities, the company said on Tuesday. 

“This is entirely primary capital that the company will use to expand its footprint to more than 30 stores over the next 24-30 months,” said Ajit Dhumal, founder, BBC. 

The company, that was set up in 2012 has seven stores in Mumbai and Pune and will expand to cities such as Bangalore, Delhi NCR, Hyderabad, Nagpur, Pune and Jaipur. “We will also look to acquire a micro-brewery going forward,” Dhumal added. It has a revenue of around Rs 40 crore for the financial year ended 31 March 2019. “We look to double our revenues over the next two years.” 

The company will experiment with a franchise-based company operated stores in the next phase of expansion. “We will open another 6-7 stores on our own and the remaining will be on the franchise basis,” Dhumal added. The company funded its expansion till date with internal accruals and debt. 

“Partnering with British Brewing Company not only aligns with our business philosophy but goes further to give us a slice of action in the F&B space which has a lot of room for premiumization both in terms of service and product,” said Murli Ramkrishnan, group CEO, NeoMile Capital. 

For NeoMile, that has been investing in the listed companies till date, private investing is a relatively new ball game. The company is investing through its own proprietary fund as well co-investments from HNIs and Ultra HNIs in this deal. 

The fund is interested in the FMCG and F&B sector in India and is looking at a couple of more investments in immediate future. It is looking at picking up stake in Tea Villa, a beverage and snack chain as well as invest Rs. 40 crore in South-India based Thickshake Factory and an announcement is likely soon. 

“We expect the F&B space in India to grow at a CAGR of 10% over the next five years. We believe that factors such as rising disposable income, improving demographics, rapid urbanization and evolving mindset of the consumer is creating an attractive market for investors,” Ramakrishnan said. 

“This is entirely primary capital that the company will use to expand its footprint to more than 30 stores over the next 24-30 months,” said Ajit Dhumal, founder, BBC. 

The company, that was set up in 2012 has seven stores in Mumbai and Pune and will expand to cities such as Bangalore, Delhi NCR, Hyderabad, Nagpur, Pune and Jaipur. “We will also look to acquire a micro-brewery going forward,” Dhumal added. It has a revenue of around Rs 40 crore for the financial year ended 31 March 2019. “We look to double our revenues over the next two years.” 

The company will experiment with a franchise-based company operated stores in the next phase of expansion. “We will open another 6-7 stores on our own and the remaining will be on the franchise basis,” Dhumal added. The company funded its expansion till date with internal accruals and debt. 

“Partnering with British Brewing Company not only aligns with our business philosophy but goes further to give us a slice of action in the F&B space which has a lot of room for premiumization both in terms of service and product,” said Murli Ramkrishnan, group CEO, NeoMile Capital. 

For NeoMile, that has been investing in the listed companies till date, private investing is a relatively new ball game. The company is investing through its own proprietary fund as well co-investments from HNIs and Ultra HNIs in this deal. 

The fund is interested in the FMCG and F&B sector in India and is looking at a couple of more investments in immediate future. It is looking at picking up stake in Tea Villa, a beverage and snack chain as well as invest Rs. 40 crore in South-India based Thickshake Factory and an announcement is likely soon. 

“We expect the F&B space in India to grow at a CAGR of 10% over the next five years. We believe that factors such as rising disposable income, improving demographics, rapid urbanization and evolving mindset of the consumer is creating an attractive market for investors,” Ramakrishnan said. 

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