PE firm NeoMile, others to invest $14m in India’s British Brewing Company

Photo: Reuters

British Brewing Company (BBC), a chain of English lounge bars, is raising Rs 100 crore (about 14 million) from investors including private equity firm NeoMile Capital, the latter announced on Tuesday.

The company plans to use the capital to accelerate its growth and expand its footprint in Bengaluru, Delhi NCR, Hyderabad, Nagpur, Pune and Jaipur. It will also use the funds to set up over 30 new outlets and a microbrewery over the next 18-24 months.

“Today, we own 7 outlets and expect to add 6 more outlets and a centralised micro-brewery by the end of this financial year. Our aim is to add 30 new outlets with over 500 distribution points for BBC’s craft beer by the end of 2022,” Ajit Dhumal, founder of BCC, said.

BCC is also looking to spend about $1 million from the current investment round to acquire a microbrewery in the vicinity of Mumbai, a VCCircle report said.

“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 premiumisation both in terms of service and product,” said Murli Ramkrishnan, group CEO, NeoMile Capital.

Founded in January last year, Mumbai-based NeoMile Capital describes itself as a multi-strategy asset management advisory firm with a focus on capital investments in manufacturing, technology and growth equity investments.

This transaction marks NeoMile Capital’s first private equity investment. It has been investing in listed companies to date.

According to a report in The Economic Times, the PE company is also looking at acquiring a stake in Tea Villa, a beverage and snack chain, as well as inject Rs 40 crore in South-India based Thickshake Factory. The deals are likely to be announced soon.

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

Earlier this year, United Spirits Ltd sold its entire equity interest in subsidiary Four Seasons Wines as well as associated brands to Grover Zampa Vineyards and Quintela Assets in a move to monetise its non-core assets.

In another deal in the alcoholic beverages space, IIFL Asset Management Ltd invested in craft-beer maker White Owl in July last year.