Rama Krishna Sangem
Hyderabad’s pride Paradise biryani, also known as World’s favourite biryani, has got new owners. Mumbai-based Samara Capital has acquired 51% of this famous food brand, thus becoming the effective owners of the company. This iconic biryani started in 1953 is now in the hands of Hyderabad-based Hussain Ali Hemati as its chairman. Hemati now retains a 4 per cent stake.
Originally, Hemati and Ghulam Hussain launched this biryani house, as a small cafe adjacent to Paradise cinema in Secunderabad, twin city of Hyderabad. Paradise is also famous for Irani chai, which is another speciality of Hyderabad. Paradise circle has become a landmark in Secunderabad.
Samara Captial stake now 51%
Samara Capital, led by a consortium of investors, is headed by Sumeet Narang, currently owns 49% in Paradise Food Court. Now, this is going up to 51% after an investment of Rs 560 crore ($75 million). Samara Capital wants to further improve the menu and open 450 more restaurants, from the present 50.
After remaining static for several decades, Paradise has gone corporate since 2014 when Samara Capital has entered the group, with an initial investment of around Rs 70 crore. By 2020, Samara has put in Rs 200 crore in phases. Hemati became the full owner of the restaurant chain in 1978 and since then, he started expanding its footprint not only in Hyderabad, but outside too.
Franchise model
Paradise has restaurants in most southern cities plus a few in North India. There is a market for franchise food outlets of Paradise, both for dine- in and take- away in the US and Canada. Interestingly, the food restaurant chain is in profits and is likely to net revenue of around Rs 250 crore, according to sources.
Samara Capital is known for their professional management and quality-oriented operations. The group will widen the range of products and quality of service, sources said. Though the signature of Hyderabad may dilute the Paradise brand, new investors are likely to retain its authentic flavour. Hemati will continue to lead.
