CX Partners Controlled Biryani Brand Dindigul Thalappakatti Raises Growth Capital Increasing Current Valuation to Rs. 860 Crore

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    CX Partners controlled biryani focused CDR brand Dindigul Thalappakatti (“DT”) has raised a fresh round of funding which currently values the brand at Rs. 860 crore.

    Ashutosh Bihani, CEO, Dindigul Thalappakatti

    The funding was led by Tree Line Investment Management along with other reputed private & public individual investors. The family office of Indian conglomerate ‘Havells Group’ is also a part of the investor cohort.

    The second round of investment will enable Dindigul Thalappakatti to fast track its growth plan across focus markets – Kerala, Andhra, Telangana, Karnataka, Tamil Nadu and Sri-Lanka. Over the course of the next one year, Dindigul Thalappakatti plans to set up 25-30 restaurants and cloud kitchens. The brand currently operates over 85 restaurants and cloud kitchens globally.

    Despite going through unprecedented events of the COVID pandemic over the last 18 months, Dindigul Thalappaktti was quick to achieve 100% EBITDA recovery and remains one of the few F&B brands who were profitable during FY 2020-21.

    Desai Diwanji acted as a legal counsel for the company and existing shareholders. Sahil Jain, existing shareholder was the advisor to the transaction. The brand was previously valued at Rs. 450 crore after a consortium led by private equity firm CX partners picked up a majority stake in Dindigul Thalappakatti for Rs. 235 crore. The deal in October 2019 was one of the largest investments in a local restaurant chain brand in India.

    Ashutosh Bihani, CEO, Dindigul Thalappakatti, said, “The core foundation of Dindigul Thalappakatti’s brand is rooted- in its rich heritage, authenticity and uniqueness. Dindigul Thalappakatti has always commanded strong loyalty across south India and more recently in select international markets. We plan to retain our leadership in the fragmented and commoditised Biryani Market through faster yet best in class profitable growth.”

    Himself being a private equity investor before onboarding as CEO, Bihani attributes the differentiation of the brand to its unique product offering and value proposition, customer and employee centricity and highly profitable model with restaurant paybacks ranging under 18 months.

    Zaheer Sitabkhan, Founder of Tree Line Investment Management, said, “We are pleased to invest and partner with Dindigul Thalappakatti as they bring this established and delicious cuisine across Southern India and several overseas markets. DT has identified meals people love and at a price point offering fantastic value. We are impressed with what management at DT have achieved to prepare the business to grow and scale across the South and are excited to be part of their journey.”

    About Dindigul Thalappakatti

    Dindigul Thalappakatti Restaurant is a Biryani focused casual dining restaurant chain whose first outlet was opened in 1957 at Dindigul, Tamil Nadu. The restaurant has 87 outlets and is present across India, USA, UAE, Singapore, Malaysia & Sri Lanka. In India, the restaurant has 79 outlets that operate in Tamil Nadu, Karnataka, Kerala, & Pondicherry. The Thalappakatti restaurant focuses on providing authentic South Indian dining experience.

    For more information, please visit, thalappakatti.com.

    About CX Partners

    CX Partners is a private equity firm based in New Delhi, India and makes middle market equity investments in companies operating in the healthcare, financial services, consumer products, outsourced services, and niche manufacturing sectors. CX has been one of the few active investors in the restaurant space.

    For more information, please visit, www.cxpartners.in.

    About Tree Line Investment Management

    Tree Line Investment Management Limited was established in 2006 with two subsidiaries in Hong Kong and Singapore respectively. Tree Line has nine investment professionals throughout Asia-Pacific, with six senior members each having over twenty five years experience covering Asian markets. The group aims to achieve significant capital gains by identifying strong growth opportunities in the Asia-Pacific region for medium- and long-term investment. Tree Line Advisors (Hong Kong) Limited is licensed by the Securities and Futures Commission in Hong Kong to conduct the regulated activity of asset management for professional investors.

    For more information, please visit, www.treelineim.com.

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    New book offers blueprint for systems change in a deeply divided world - Book Review By Ashutosh Kumar Thakur

    New book offers blueprint for systems change in a deeply divided world - Book Review By Ashutosh Kumar Thakur

    As the world battles to shake off COVID-19, it appears increasingly stuck; inequality has widened, climate breakdown is accelerating, and many are suggesting that we may have missed the opportunities presented by the pandemic to build a more just and inclusive system. But a new book out this month shows us that a way forward is right under our noses – it just happens to be invisible to most people.

    The Systems Work of Social Change by Cynthia Rayner and François Bonnici, published by Oxford University Press, offers a fresh – and deeply hopeful – take on the age-old problem of how to change the world. This book takes a textured view of social systems by illuminating an overlooked source of deep social change: the quiet and often  unglamorous work that is happening daily in organizations around the world that have found innovative ways to solve localized challenges.

    The book is framed by a fundamental paradox: We live in a world where what Rayner and Bonnici call the “industry of social change” (which Peter Buffet famously termed the “charitable industrial complex”) has grown to be larger than the global finance industry, contributing, on average, 4.5 percent to GDP and employing 7.4 percent of the world’s workforce. Yet social systems remain stubbornly resistant to change.

    Rayner and Bonnici argue that if we want change, it is perhaps self-evident that we need to approach things in a “radically different way”. But to do so, they caution, requires us to first understand things in a radically different way. Simply put, “the thinking that got us here, will not get us to where we want to go”. In seeking to understand and reimagine, Rayner and Bonnici distil 200 years of thinking that has shaped the social change movement and turn to the lived experiences of eight leading social purpose organizations and a host of social change practitioners on almost every continent for insights on how to do things differently.

    The result is an exhilarating and revealing glimpse into how positive social change actually happens, on the ground, and the processes and practices to drive this. Rayner and Bonnici have surfaced a set of clear and pragmatic insights that will be useful for people grappling with solving the world’s problems large and small; a kind of “how-to” for working in social systems that is both subtle and profoundly game changing.

    In many ways this book is a deeply personal journey, born out of a sense of growing unease that the work they were doing was, at best, naïve in its understanding of how change happens. Bonnici and Rayner met at the University of Cape Town Bertha Centre for Social Innovation a decade ago – where Bonnici, a former medical doctor, was the founding director (he has since moved to head up the Schwab Foundation for Social Entrepreneurship) and Rayner was a senior researcher. Working in the tumultuous, unequal yet resilient society of post-apartheid South Africa, they found they had one foot in the world of institutional change-making and the other firmly planted in the “grassroots” work of social change.

    Against this backdrop, they were approached by the Schwab Foundation to generate a new set of learnings from organizations tackling the same kind of complex, large-scale, and deep systemic problems they were encountering at the Bertha Centre. The Schwab Foundation hosts the world’s biggest community of accomplished social change leaders, while the Bertha Foundation supported networks of hundreds of social justice activists and social movements around the world.

    This ignited a longer-term research engagement with the fundamentals of systemic change. Through the networks they had built with the organizations on the African continent, and globally through the Bertha Foundation and the Schwab Foundation, they spent five years exploring and studying dozens of social change organizations in greater depth than they ever had previously.

    The book catalogues this journey, complete with the twists and turns of coming to terms with understanding the world of social change in a radically different way. The two ultimately conclude that systems cannot be “fixed” in the way that the industry of social change confidently sets out to achieve, but they can be changed through the systems work of organizations. They define this work as the day-to-day principles and practices that guide the actions of organizations and individuals as they undertake to change the systems and structures that cause deep problems to persist.

    This work emphasizes process and people over outcomes and revolves around three key principles: connection (how people are working together), context (how people adapt their work to their context), and power (who makes the decisions).

    “Through systems work, these organizations are engaging in day-to-day actions that acknowledge the depth of systemic problems. They are working to fundamentally alter the way a system functions in relation to change. They are ensuring that the people most immersed in the context of a social problem and who live it every day—the people we call primary actors in the system—are able to engage with the challenge in new ways. In this way, organizations are working within systems to make them function in more responsive and representative ways,” write Rayner and Bonnici.

    “When we treat social change efforts with defined starts and ends, we nearly always feel frustrated, since our understanding of what needs to change is necessarily a moving target. However, by focusing on the process of change—asking critical questions such as who deserves? who designs? and who decides?—we can move forward into the future with a greater capacity to adapt.”

    Ultimately, this book fills the awkward and unspoken gap between the theory of systems change and the actual practical work that is required to get this done. As such, it has been welcomed by the sector as important and overdue, with Stephan Chambers, Director, Marshall Institute, London School of Economics and Political Science calling it a breakthrough book that “will guide those who work in and think about systems change for a generation.”

    Rayner and Bonnici say that they hope that the book will enable practitioners to move from a recognition that things are complex to having a handle on the steps required to navigate this complexity purposefully. And Winnie Byanyima, Executive Director, UNAIDS in her endorsement of the book suggests that this is exactly what it will achieve: “Addressing inequalities and deep-rooted injustices in our society requires a clear vision of the world we want and a process to get there. In The System Work of Social Change, Cynthia and François clearly articulate the key lessons and principles by which we can get there.  A must read for those who believe that together we can build a better world!”

    Book: The Systems Work of Social Change by Cynthia Rayner and François Bonnici
    Published: Oxford University Press
    Price: INR 350

    Book Review: The systems work of social change By Ashutosh Kumar Thakur
    (Ashutosh Kumar Thakur is Bangalore based Management Consultant, Literary Critic and Co-director with Kalinga Literary Festival. He can be reached out at ashutoshbthakur@gmail.com)