Patisserie chain Theobroma gearing up for a change in ownership: Reports

Theobroma Foods, the popular patisserie chain famed for its pastries, cookies, and cakes, may be gearing up for a change in ownership. Talks about a potential stake sale have been initiated by the promoters and investors, signaling a significant transition for the 20-year-old establishment.

As per reports, insiders familiar with the developments disclosed that discussions have commenced with merchant bankers, aiming to facilitate the stake sale. Among the key revelations, it has been suggested that ICICI Venture, currently holding a 42% stake, is contemplating selling its entire share for an estimated ₹1,200 crore. Additionally, sources hinted at the founding family's intention to exit the company, aligning with an anticipated valuation of roughly ₹2,800 crore, reported Mint.

Founded in 2004 by Kainaz Messman, a former pastry chef at Oberoi Hotels, Theobroma Foods began as a single outlet on Colaba Causeway in Mumbai. However, subsequent investments, particularly by ICICI Ventures in 2017 amounting to $20 million, facilitated the chain's expansion across India. Today, with 194 stores nationwide, Theobroma stands as a well-recognized pan-India brand, marking a considerable journey from its humble beginnings.

While discussions with various merchant bankers are ongoing, no formal sales process has been initiated yet. Sources close to the matter anticipate a potentially prolonged timeline of six to nine months before a deal materializes, awaiting the FY24 financials of the company, reported Mint.

Despite the impacts of the COVID-19 pandemic, Theobroma expanded its footprint beyond Mumbai and Delhi, venturing into cities like Pune, Hyderabad, Bengaluru, and others. The chain's diversified offerings, including brownies, cookies, sandwiches, and more, have resonated well with consumers, contributing to its success.

Notably, the Indian food service market, estimated at $51 billion in FY23, is witnessing substantial growth with evolving consumption patterns and increased demand in smaller markets. Amidst this landscape, Theobroma Foods reported a notable turnaround, shifting from a net loss of ₹11 crore in FY22 to a standalone net profit of ₹19.59 crore in FY23, accompanied by a significant rise in revenue from operations

Also Watch: Zomato breaks delivery records on New Year's Eve 2023; ₹97 lakh given as tips to delivery partners