Speciality Restaurants, which owns and operates the Mainland China and Oh! Calcutta chains, is in an advanced stage of discussion to acquire a restaurant chain focused on oriental cuisine.

The company, promoted by Anjan Chatterjee, has earmarked Rs 125 crore for the acquisitions. If the deals are struck, this would be the first inorganic move by the company in its journey over the last quarter of a century.

Speciality, which has 125 units under eight brands as of December 31, has signed a term sheet with at least one of the potential targets which operates about eight restaurants. “We are looking at a couple of targets. There is a Rs 200 crore cash sitting on the balance sheet. The plan is to deploy it judiciously rather than just earn interest income (from it),” Chatterjee said.

While the company added four new outlets under the Mainland China and Asia Kitchen by Mainland China brands in the last quarter, Chatterjee emphasised that expanding fine dine chains rapidly without compromising quality was not possible and hence the need for acquisitions.

Chatterjee, however, added his group would not look at growing unprofitably. The restaurants under the buy-out wish list are said to be profitable operationally and can be turned profitable at net level following integration after acquisitions. Speciality plans to retain the acquired brand and grow.

Even as Speciality is operating under multiple brands, formats and cuisines, it has chosen to focus mostly on the oriental space with Mainland China and Asian Kitchen brands which cumulatively contributed 41 per cent to the Rs 109.49 crore turnover in Q3FY24. The other significant brand under it is Oh! Calcutta. The company posted a PAT of Rs 14.15 crore.

Banquets

Chatterjee, who was in Calcutta at the inauguration of a banquet at Primarc Square, said Speciality is planning to expand in this space in the East. It has identified locations in Salt Lake, Rajarhat and Central Calcutta for three possible banquet locations.

“We have a lot of brand equity in the city, which can be capitalised on,” Chatterjee said. In a banquet, clients will have the option to choose from multiple cuisines (oriental, Indian and continental) and brands such as Mainland China, Sigree & Global Grill, Oh! Calcutta and Café Mezzuna.

Speciality intends to develop this as a separate business vertical, building on the catering business it had entered before the pandemic. Banquets are big revenue earners and profit centres for hotels in Calcutta, thriving on marriages and conferences.

The banquet at Primarc Square, named Nishtara, has been developed by Primarc Projects, where Speciality and Munna Maharaj will offer their catering services. Chatterjee said he plans to set up at least two restaurants in the property, including a Café Mezzuna on the 10th floor rooftop.