‘Cyril Amarchand Mangaldas to be Asia’s first law firm to employ AI for legal work’

Cyril Amarchand Mangaldas will become the first law firm in Asia to use artificial intelligence in its operations, said Managing Partner CYRIL SHROFF in an interview with SHAJI VIKRAMAN and KHUSHBOO NARAYAN, as he reflects on the 100 years of the storied law firm which has rapidly expanded its practice across several segments and has a roster of blue chip and other companies in the country across sectors. Edited excerpts.

Your firm is celebrating 100 years of its existence. How has the transition been especially post liberalisation for the firm and the significant changes which have taken place during this period?

It is a truly remarkable legacy of 100 years and not many organizations survive that period of time and remain relevant. But the core of service proposition of serving the clients with integrity and competence is still there today. We have been nimble and adapted to the time. With every changing era we have been able to spot the opportunities, reorganized ourselves and led the change. The idea of modern law firms was invented and led by the Amarchand Mangaldas legacy and we drew a lot of inspiration from the global scene.

In the last two decades a lot has changed, first the entire approach to talent has changed and second the idea of creating a scaled up scaleable organisation. We in the early 1990’s were some 25-30 lawyers as a combined firm and now even after the split Cyril Amarchand Mangaldas is 625 lawyers. The use of technology is another area where we are constantly upgrading. We are soon going to be the first law firm in Asia to use of artificial intelligence for legal work. A lot of our mergers and acquisition diligence will be done through this. Obviously it will have to be supplemented with human effort as well.

How has the split of Amarchand Mangaldas impacted the firm?

We are prospering. See our league tables. The split was a short blip and now it is an ancient memory. The firms brand and market cache has not been affected at all. We opened a large new office in Delhi and it is also settled down. In Mumbai and South there is no impact. Everything happens for the best.

What are the changes you have seen in the Indian legal system since modern law firms came into existence in the last 25 years?

Since then the nature of legal work itself has changed from traditional disputes and conveyancing it has moved to a completely different environment with global standards whether it is how capital is raised through initial public offers, how cross border mergers and acquisitions are done or how large projects are financed. So the nature of lawyering has had to also significantly adapt to all the new offerings that has been made possible because of the economy opening up to the world. The nature of disputes have become far more complicated.

One of the disquieting things which has been voiced by many investors is contract resolution and which after the Vodafone ruling took a knock. And after that now people are again talking about demonetisation. How much of it is a worry because you engage with so many companies and clients?

Legal uncertainties continues to be a worry and it is sort of linked also to enforcement. But Vodafone and demonetisation are two very different issues. In Vodafone the issue was retrospective taxation and not respecting the judgement of the Supreme Court , despite the fact that you sort of went through the whole system and succeeded. The international community sees it almost as in bad faith. In demonetisation there is no such anxiety. From a contract enforcement point of view the international and domestic clients do not see it from the same (Vodafone case) lens. Actually they are seeing it as a positive move towards formal economy.

How much of a challenge even now is in policy implementation or execution and enforcement of contracts?

First, I would say conflict resolution and contract enforcement. Second in terms of clarity of law making and regulations. A lot of problems actually arise from ambiguous grey areas. If we do make progress in creating a better environment for doing business for both domestic and foreign, the quality of law making will have to go up. We need to pay far more attention to law making. Actually we have been quite shoddy.

This government had promised a more stable tax regime but there has been flip flops on the tax front. What do you think is the problem?

There seems to be a disconnect between the revenue administration and the political class. So the senior political leadership is gearing in a particular direction which is trying to create a more stable environment but there is a philosophical disconnect. The revenue administration and the politicians are not aligned otherwise this can never happen.

Now that a date has been set for the GST roll out, as a law firm advising many firms how do you view the new taxation regime and the level of preparedness among companies?

It is a big advisory opportunity for us especially because it is evolving on a regular basis. And there will be a lack of clarity for sometime till a new normal is found. There will be a lot of mistakes along the way so by trial and error we will get there. But GST is the game changer which will change the investment cycle.

Given the current slowdown, how is the M&A scenario?

It is quite robust. On the sell side it is stressed asset pressure and for buy side or foreign investors India continues to be a bright spot and an opportunity. And on the domestic front on the buy side some industries are particularly seeing this as an opportunity to consolidate.

The recent corporate boardroom battles have again fuelled concerns about corporate governance in Indian firms and the role of independent directors. Being an advisor to many firms, how do you view this development?

I see a lot of changes in the corporate governance atmosphere in the country. Events of last few months have forced the conversation to move to another level. For instance, independent directors now are more conscious of their roles. The role of the promoter itself is also being examined. So I think we are moving to corporate governance version 2.0 and it is a good thing. Actually now we are seeing the practical application of things like the Companies Act 2013. There is also a renewed emphasis on family governance alongside corporate governance.

Resource: http://indianexpress.com/

Resource: http://grandiose.org.in/

How the Docomo Affair Widened the Bitter Rift Between Ratan Tata and Cyrus Mistry

New Delhi: Tussles within the Tata Group on how it should react to Japanese telecom giant NTT Docomo’s legal challenges helped widen a bitter rift between Cyrus Mistry and the Ratan Tata-headed Tata Trusts.

However, these differences of opinion stemmed not from Mistry acting alone or in a manner that reportedly clashed with the Tata Group’s high ethical standards. In fact, Ratan Tata and several other members of the Tata Trusts not only sat in on a handful of key meetings that decided the group’s legal strategy, but also allegedly pushed for decisions that were, ironically, even less in keeping with the Tata Group’s ‘ethos and culture’ than the line of action Mistry mooted.

According to documents attached to a new affidavit filed by the former Tata Group chairman, on crucial decisions – such as whether the Tata Group should unconditionally deposit the $1.17 billion with the Delhi High Court – Tata Trust members showed “extreme anxiety”.

On other issues associated with the Docomo imbroglio, such as whether the finance ministry could be persuaded into giving a FEMA exemption, Ratan Tata and colleagues may have taken “direct charge”.

After the London arbitration court ruled against the Tata Group in June 2016, documents show that Ratan Tata was also keen on “suing Docomo for defamation”.

The quick deterioration of the Tata Group and NTT Docomo’s business relationship over the last two years in general, and over the last year in particular, has gone onto become a highly contentious issue since Mistry’s sacking.

Several business newspapers – and indeed to a lesser extent, the Tata Group – have indicated through anonymous sources and cryptically worded press releases that the manner in which Mistry handled the Tata Docomo affair was one of the reasons why he was fired, behaving as he did in a manner that conflicted with the “culture and ethos” of the Tata Group.

These new documents, accessed by The Wire and detailed below, present another side to this picture.

Docomo fallout

What have Docomo and Tata Teleservices been fighting over the last two years? In 2009, the Japanese telecom giant invested roughly $2.6 billion in order to buy a 26.5% stake in Tata Teleservices (TTSL).

When the investment was made, the agreement had a “put option” — which meant that when NTT wanted to sell its stake, it had the right to sell it at either “fair value” or half the “acquisition price” (in this case, half of $2.6 billion). By 2014, five years after it made the investment, NTT had enough and said it wanted to exit TTSL, thus exercising its put option.

However, By 2014, the Reserve Bank of India had come out with a new set of rules that detailed that foreign companies (like NTT Docomo) could only exit investments “at valuations based on return on equity”. What did this mean? Put simply, it meant that Docomo would have to settle for far less than the $1.3 billion it believed it was owed.

The last year has seen both sides (mainly Docomo though) accuse the other of behaving less than honourably, with Docomo engaging in international arbitration. A month after the London court’s order came through, the Japanese side also headed to the Delhi high court, to have it declare that Tata must be forced to pay despite contravening RBI regulations.

While the last two months have seen some attempt at peace talks, developments will likely start moving quickly on Feburary 2, which is when the next hearing at the Delhi high court will take place.

The new documents filed by Mistry back up (to a certain extent) his initial assertions in November 2016, a week after he was sacked, that Ratan Tata and trustee N.A. Soonawala were kept in the loop with regard to how the Tata Group handled the Docomo affair. “At all times, Ratan Tata and Soonawala concurred and approved the course of action adopted by the Tatas and as advised by legal counsel,” Mistry’s office said in November.

How much of this is true, given that the Docomo dispute has dragged out over the last four years? The Wire breaks it down.

Were Ratan Tata and Soonawala kept informed of how Mistry was handling the Docomo dispute?

The oldest instance of the Tata Trust trustees being kept in the loop, that Mistry’s documents show, is on February 1, 2015. This is two months after a final round of conciliatory talks between the Tata Group and NTT failed and at least a year after the Tata Group pointed out that offshore Tata companies could not buy Docomo’s shares.

A harried email from Tata Group chief legal counsel Bharat Vasani sent on Sunday, February 1 (2015), talks about how the Tata Sons board still “doesn’t have full clarity on what should be the scope of  prior consultation process with the Trustees and what their expectations from us are”.

“Despite having two trust representatives on our Board,” Vasani’s email reads, “we had to withdraw two resolutions from the last EGM of Tata Sons”.

Vasani’s frustration is clear and to drive home his point, he reminds Mistry that the Tata Trustees have been informed of all major decisions taken by the Tata Sons board with regard to potentially touchy issues.

“As far as I know, we have been pre-consulting/informing them on all important issues like application for bank license, Docomo, Piaggio divestment, Telecom restructuring, major capital raising etc,” the email said (emphasis added).

While the Docomo affair came into mainstream attention in 2016, it was 2014 (the year before Vasani’s e-mail) that set into motion the eventual chain of events. In 2014, the RBI made its changes to FEMA regulations and in 2014 it was Docomo that staunchly rejected the need for central bank approval.

Jump forward one year. The next email that Mistry’s documents show us is on July 26, 2016, roughly a month after the London court of arbitration ruled against the Tata Group.

In an e-mail sent to Mistry and Tata veteran Ishaat Hussain, Vasani notes that as legal counsel while he was “carefully thinking” about the Tata Group’s legal strategy with regard to Docomo, much of the issue had been taken out of his hands.

“Unfortunately, with the Trustees directly taking charge of the matter and giving direct instructions to Darius and showing extreme anxiety to unconditionally deposit the money, my view became irrelevant,” Vasani’s email reads.

Darius Khambata’s frustration

Darius here refers to Darius Khambata, a trustee of the Sir Dorabji Tata Trust and a lawyer who represented the Tatas in the Docomo litigation. Darius reportedly resigned shortly before Mistry sent in his resignation letter, saying that he “resigned due to increasing professional commitments”.

Darius’ resignation becomes important, as the rest of Vasani’s email shows. According to Vasani, Darius had “become increasingly fed up with multiple instructions” coming his way in the Docomo matter. Multiple instructions here likely refers to the orders given to him by Ratan Tata (and the Tata trustees) and Mistry (and the Tata Sons board).

“Darius told me last night over dinner that he is completely fed up with the multiple instructions to him in this matter and would like to have a joint meeting with all of us plus RNT [Ratan Tata] and NAS [N.A Soonawala] for the next steps after today’s hearing. He asked me how do I work in this kind of environment!!,” Vasani’s email reads.

Today’s hearing (July 26, 2016) refers to the exparte order that Docomo succeeded in getting from a London court, which sought to enforce the arbitration award granted in June 2016.

Ratan Tata wanted to sue

Most importantly, Mistry’s document include a summary brief prepared by AZB & Partners, a top corporate law firm, on July 30, 2016. This meeting, the brief shows, centred mainly around Tata Docomo legal strategy.

It was attended by Ratan Tata and Soonawala as well as top Tata Sons brass including Mistry, Vasani, chief operating officer Farokh Subedar, Mukund Rajan and Samir Oak. Counsel Darius Khambata also attended.

Much of this AZB brief has been redacted, including a crucial section entitled “Settlement Discussions”. Mistry’s team does leave unredacted one sentence in between as well as the final, concluding section.

The one sentence reads: “Mr Ratan Tata felt that since Docomo was clearly looking to tarnish the reputation of the group, we should explore the possibilities of suing Docomo for defamation”. This would suggest the argument that Mistry’s handling of the Docomo affair as not being “in the spirit of the Tata Group”, as one leading business daily put it, may be mistaken.

The final concluding section however states that two decisions were taken with regard to how the Tatas should approach the Docomo dispute. Firstly, Tata Sons would “file an application in London and Mr Khambata would review it”. And secondly, Tata Sons would file “for resisting the award in India”.

Both these developments ended up happening over the next few months.

To what extent were Ratan Tata and the Tata Trusts involved in TTSL’s operations?

The documents show two instances of the Tata Trust intervening in Tata Teleservices’ operations. The first was in June/July 2016, when Tata Sons needed to approve an investment proposal that would help the company bid for spectrum in the September auctions. The second, was with regard to the “acct closure” of Tata Teleservices Maharashtra (TTML) – in 2016, it was reported it may shut down CDMA operations in the 850 Mhz band.

An email from Subedar to Mistry on June 7, 2016 noted that Ratan Tata had disapproved of any investment proposal to be taken up at the Tata Sons board meeting.

“NAS had called this morning and alerted me that RNT had objected to any investment proposal for TTSL proposed to be taken at the bd [board] meeting. He asked me for the Note, which he offered to take to RNT and refresh the decisions at our last Fri [Friday] meeting, especially considering the acct closure of TTML,” Subedar’s email reads.

“In the evening, he [NAS] called back,” the email continues, “and mentioned that Mr RNT felt the note was not correctly captured and he redid the Note.”

“It does not mention re 800 spectrum as a fallback, which I again checked with him but he felt RNT did not mention. Incorporating the NAS note I have prepared the BD agenda note. If you agree, will send to the directors,” Subedar wrote.

A buyer for Docomo?

One of the initial allegations levelled by Japanese partner NTT was that the Tatas simply failed and perhaps didn’t try hard enough to find a buyer, both for Docomo’s stake as well as for the whole company.

The documents show that this is not the case. Two things perhaps held Mistry and Tata Sons back from doing so. In a letter to Soonawala in January 2016, Mistry gives him an analysis of all Tata Group companies.

In the section under TTSL, Mistry notes that while EBITA  has improved from 700 crores in 2014 to 2,400 crores in 2016, “the sustainability of this performance is questionable”. However, when Mistry did try to sell the telecom business in the past, the figure “was close to a negative equity value of 14,000 crores or more”.

“This would mean a write-down of at least 26,000 crores, besides the potential liability of 7,200 crores to Docomo,” Mistry wrote. To put this write-down in perspective, the current market cap of Tata Sons is around 1,74,000 crore ­– which means that the Docomo writedown would be a little over 10% of the overall’s market cap.

Despite this, in January 2016, Mistry confirms that Vodafone was an interested and active potential buyer. However, Vodafone felt that “the transaction is too complicated”. Other “less palatable” options would include a writedown of about Rs 35,000 crores.

Why did Vodafone think the acquisition would be too complex? Mistry lists a few reasons in a separate affidavit: “In TTSL, the ongoing litigation regarding 2G dual technology, delisting of TTML contingent liability of several thousand crores with respect to contracts entered into with Viom and outstanding litigation with Docomo would stand in the way of closing a deal with Docomo”.

Was the original deal between the Tatas and Docomo legitimate?

One of the more interesting details to come out of the documents that Mistry presented to the National Company Law Tribunal is that is that the controversial “put-option” was never disclosed to the Foreign Investment Promotion Board at the time of the deal in 2009.

This may have worked against both Tata Sons and Docmo. As Mistry notes, “the non-disclosure of the put option in the Docomo transaction has been interpreted by the Government of India as default on behalf of Docomo and Tata Sons”.

It is unclear whether in 2011, when Docomo subscribed to a rights issue worth Rs 800 crore, and insisted that these shares also come under the earlier protection clause, the put-option was disclosed to Indian authorities. Nevertheless, at the time, the RBI rules hadn’t been changed.

Resource: https://thewire.in

Resource: http://grandiose.org.in/

Eros Group to explore acquisition of distressed assets pan-India

Leading real estate group of Delhi NCR, Eros Group, which boasts of seven decades of legacy in real estate development, including hospitality developments in the region, will explore acquisition of distressed hotel assets pan-India in the next couple of years.  The Group owns five upscale hotel assets in the national capital region, including the newly opened Radisson Blu Faridabad.

Speaking to Hospitality Biz on the sidelines of the official opening of the Faridabad property, Akshay Sood, Director, Eros Group said that the group expects “interesting” times in the hospitality development in the next couple of years, and might explore picking up existing hotels or semi-built hotel assets or even Greenfield properties across India.  “We might pick up couple of such properties if we get them at the right price,” he said.  When asked about the probable destinations, Sood said that they are open to investment opportunities pan-India.

Eros Group opened the first five-star deluxe hotel in Faridabad, an industrial town adjoining Delhi, recently. Radisson Blu Faridabad has 124 rooms with spacious banqueting and conference facilities to cater to both corporate and social events.  

As far as brand partnerships are concerned, Sood said that they tie up with hotel management companies with “synergies” as well as experience and expertise in the market.  Eros Group owns Shangri-la Eros Hotel New Delhi, Eros Hotel Nehru Place New Delhi, Crowne Plaza and Holiday Inn, a twin hotel, in Mayur Vihar Delhi.

Resource: http://www.hospitalitybizindia.com/

Resource: http://grandiose.org.in/

Demonetisation impact: Note ban plays party pooper

Prime Minister's demonetisation drive has not only hit the opposition parties but also the star-studded party circuit in the Capital, with many hotels forced to cancel their New Year Eve events and celebrities jetting abroad for more moolah.

The hotels that have not cancelled their events will only feature in-house DJs instead of the usual entourage of Bollywood celebrities, leading dance troops and stand-up comedians, as most of the business is strictly cash-driven.

According to sources, no actor or international artist has been booked to perform in Delhi and NCR so far. The only big names confirmed so far is Punjabi singer and actor Diljit Dosanjh, who was recently seen in Udta Punjab. He will perform at a five star hotel in Gurugram.

Artists and event organisers said that all the leading stars are either performing abroad or they have chosen not to attend any party as most venues do not have the money to pay their rates. A source told MAILTODAY that an international rapper who will perform at a nightclub here had to cut his fee from Rs 10 lakh to Rs 6 lakh. Subir Malik, pianist with the band Parikrama, said, "Demonetisation has hit a lot of industries across the country, and business for musicians is down. It's impossible to make a new debit or credit card for everyone in such a short time." Malik said that 95% gigs have gone to DJs, not bands, because it's more expensive to hire a band.

He said that bands are also reducing their fee this year. "I'm telling everyone that they should go for whatever they get. For example if a band which usually charges 3.5 lakh per gig gets  Rs 2.5 lakh gig right now, I'd tell them to take it," he said.

A host of shows scheduled for New Year have also been cancelled at the eleventh hour after organisers failed to arrange the cash needed to pay vendors. "It is recession for party venues as they don't have money to pay to their vendors and to artists," said Yogesh Dixit of YS event. Sources said that nearly 80-90 per cent of the bookings were done in cash. 

"Table booking at nightclubs used to cost over a lakh for New Year parties, but they are down this year as most bookings were done by industrialists and builders in cash. Now they are avoiding such bookings," said a manager of a popular night club. Even the restaurants and bars at popular party places like Connaught place and Hauz Khass are feeling the heat of demonetization.

"Restaurants are trying to keep the package easy on the pocket this year," said hospitality sector veteran Umang Tewari. Some industry experts claim that demonetisation had very little impact on corporate and young tech savvy crowd. "Delhi is a different market as compared to Bangalore, which is mostly cash driven. This will set the right tone for the future forcing both organizers and party goers use digital money and bring more transparency," said leading hospitality consultant Pravesh Pandey.

Resource: http://www.businesstoday.in/

Resource: http://grandiose.org.in/

Britannia to reinvigorate Tiger brand, eyes breakfast and premium segments

New Delhi: Biscuit maker Britannia Industries Ltd’s research and development (R&D) team is looking at creating new categories in the premium segment while reinvigorating its mainstay Tiger brand of biscuits in the value segment.

The Bengaluru-based company, apart from exploring expansion in categories such as salty snacks and value-added dairy, is looking at entering the breakfast segment in its drive to evolve into a total foods company.

“The whole idea is going to be that how do we basically not substitute the housewife with a packaged breakfast but help her in delivering the kind of healthy, tasty, nutritious breakfast which is wholesome and also safe for the family,” said Britannia’s R&D and quality vice-president Sudhir Nema.

“You have to become the third hand for the housewife so that you are helping and supporting her in terms of getting the breakfast ready,” Nema added.

In the premium segment, evolved cakes and rusks with inclusions are in the launch pipeline. Britannia also plans to add products in the dairy segment under which it currently sells cheese, ghee, butter, milk and yogurt among other products.

Nema’s team is trying to balance the premium and value segments, while also competing with ITC Ltd, maker of Sunfeast biscuits, and Oreo cookie maker Mondelez International Inc. in the higher end, and Parle Products Pvt. Ltd in the lower end.

Premium products account for about 40-45% of Britannia’s product portfolio. Tiger contributes around 12% to the revenue.

“Value as a business we have ignored or haven’t done enough in many years actually. We want to really reinvigorate the Tiger portfolio in terms of the kind of product we have, the kind of experience which we deliver and how we can do each and every variant of Tiger (and yet keep the cost intact). So it’s about focusing on the core portfolio (Tiger) and then really innovating on the premium segment,” said Nema.

“Basic biscuits are available almost in all villages. An important carrier brand of growth in these markets is Tiger. Tiger Glucose and Tiger Creams are doing very well compared to the value brand market (which is stagnant or declining but Tiger cookies are not doing as well),” Motilal Oswal Securities Ltd said in a November report.

Britannia set up a 55,000-sq. ft R&D facility at Bidadi, on the outskirts of Bengaluru, at an investment of Rs200 crore in November. The facility is expected to boost innovation and become more cost-efficient at a time when the company faces tough competition from others.

Britannia’s second-quarter profit rose 5.84% to Rs234.03 crore from a year earlier and revenue increased 11.2% to Rs2,430.28 crore in the three months ended 30 September. It launched two new products in the second quarter—50-50 Mathri Masti and Good Day Chocochips.

“If you think about the consumers today, they are more aspirational. They want to experiment a lot more on premium, indulgent products. It’s not only in food, it’s (in) everything. And hence you’ll see a lot of activity happening in that segment, even from Britannia’s side,” said Nema.

“Premiumization caters to a profitable niche. The niche area is small and there is only that much that you can grow. If everyone starts to focus on premiumization, then there comes a point in time that the finite space becomes severely restricted and all the players are fighting in that opportunity pie,” said Ankur Bisen, senior vice-president at retail consulting firm Technopak Advisors.

The premium space does not account for more than 10% of the market no matter how the pie is sliced. Close to 70% of retail consumption in India is food and food-related but the branded penetration of food into this category is in single digits. The value segment is severely under penetrated and has got maximum opportunity but it is the least served by brands, Bisen added.

Resource: http://www.livemint.com/

Resource: http://grandiose.org.in/

Oppo grew 1578% on year to grab third spot with 9% smartphone market share in India: Canalys

NEW DELHI: Chinese handset maker Oppo grew 1578% on year in the fourth quarter of 2016 to reach third spot, grabbing 9% of the India’s overall smartphone market, according to data shared by Singapore-based research firm Canalys.

“Oppo was the best-performing vendor in the top five, shipping 2.6 million units, up from 150,000 a year ago, and a 150% increase from the previous quarter,” the agency said.

“Oppo’s intensive brand-building has paid off. In the past year, it has sponsored popular TV shows, T20 cricket and signed up local celebrities Hrithik Roshan and Sonam Kapoor to build popularity,” said Research Analyst Lucio Chen.

Beyond sponsorships, Oppo has also driven strong channel expansion activities, investing in channel marketing initiatives and securing vital shelf space with local mobile retailers. While this is a capital-intensive approach, the significance of building a brand in India cannot be underestimated, Chen added.

Second-placed Xiaomi’s focus on Indian expansion continued to pay off as it reached the 3.0-million-unit mark, growing by more than 230% year on year.

Lenovo shipped 2.6 million smartphones, a 14% on year decline in the quarter, as compared to 3 million smartphone shipments last year. Lenovo finished fourth, followed by Vivo, which shipped just over 2 million smart phones.

Samsung’s smartphone shipments declined to 6.2 million in the quarter from 7 million shipments in an year earlier period. The Korean major still leads the market with a 22% share.

In the quarter, Indian smart phone vendors were pushed out of the top five as Chinese vendors continued to grab market share with extremely price-competitive devices. Local vendors have also been hit hard by the Indian government’s decision to demonetize the Rs 500 and Rs 1,000 (US$7.30 and US$14.65) banknotes.

“Local brands’ target customers typically buy in cash and from independent retailers. With the short-term liquidity crunch caused by demonetization, these retailers are suffering a slowdown in consumer spending. Local vendors are losing out as retailers look to shift their stock to fast-moving, current devices,” said Canalys Analyst Rushabh Doshi.

“In Q4 2015, Micromax, Intex and Lava took second, third and fifth place, accounting for almost 30% of the market. One year on and all three vendors have dropped out of the top five, with their collective share falling to around 11%,” Doshi added.

Resource: http://telecom.economictimes.indiatimes.com/

Resource: http://grandiose.org.in/

Food court operator KWALS Group partners Delhi based investor Now Capital Group

One of the largest food court operators in India and operator of major food brands such as the upcoming American restaurant chain IHOP, the Kwals Group, has partnered with leading investment and advisory firm, Now Capital Group.

The idea is to increase the portfolio and scale of both companies.

In addition to the current capital infused by KWALS and Now Capital, the firms plan to infuse over Rs. 200 crores to execute their national expansion strategy through organic growth and acquisitions of key businesses. Now Capital has infused an undisclosed amount and will help KWals infuse that much amount  across all their businesses.

Kwals has most recently signed a multi-unit franchise deal with Dine Equity to launch IHOP restaurants in India, with the first store to be opened in Cyberhub Gurgaon in the coming months.

India is the 19th country for IHOP and furthers the plans of Kwals to expand their mark across formats and brands. IHOP –  International House of Pancakes – plans to win the market through its USP: eggless pancakes, bottomless tea/coffee and an indulgent all day dining menu. Late night menus and options are in the works as well.

Sahil Baweja and Ankit Gupta of Now Capital will join the advisory board of Kwals and help formulate investment strategy and expansion plans of the Kwals Group.  This will further solidify the team, which already boasts of prominent industry veterans including Sanjay Sachdeva (previously with the Devyani group) and Gaurav Bawa (previously with Nandos and Yum!).

Elaborating on the plans, Director, Now Capital, Sahil Baweja, commented, “As we continue to grow our F&B footprint, we are entering into strategic partnerships and investing across the spectrum from QSR to fine dining. We are immensely confident that ‘new segments’ such as American breakfast and all day dining will be the elusive growth drivers for the restaurant industry. Both the companies have a unified vision which is being powered through this strategic investment and on-going advisory.”

Director, Kwals Group, Sameer Lamba, sharing his vision commented, “We are excited about the partnership with Now Capital.The Now team brings immense domain expertise that complements our current team. Through this new commitment, we are looking forward to facilitate new ventures and expanding our footprint across the country through various new brands and formats, starting first with IHOP.”

Director, Now Capital, Ankit Gupta, further added, “In addition to infusing funds, we are working closely with the Kwals team to provide real estate advisory, financial structuring and developing the go to market strategy to ensure that each of Kwals’ ventures remains cash flow positive and meets expansion goals.”

In addition to Kwals, Now Foods – the F&B division of Now Capital – has equity positions in Carls Jr. India, Boombox Café India, Chai Thela, and franchises of Keventers. Upcoming projects include Blacktail, a luxury Polo Bar on Golf Course Road Gurgaon, a restaurant brand with Punjabi icon Gurdas Maan and a celebrity chef driven Indian restaurant.

Resource: http://www.indiaretailing.com/

Resource: http://grandiose.org.in/