Everstone offloads RBA stake as Ajanta Pharma family eyes majority control

INDIA – Private equity firm Everstone has launched the sale of its complete 11.26% stake in Restaurant Brands Asia (RBA), Burger King’s master franchisee for India and Indonesia.

According to Reuters sources, this move paves the way for a new strategic investor: the family office of Ajanta Pharma’s founders, who also manage restaurant operations.

The transaction includes a capital infusion of up to INR8 billion (US$88 million), designed to accelerate RBA’s store rollout and operational upgrades across its high-growth territories.

While the precise stake size for Ajanta remains under wraps, insiders suggest it could evolve toward majority ownership as additional shareholders reduce their positions.

RBA operates over 500 Burger King outlets, concentrating on urban hubs like Mumbai, Delhi, and Jakarta’s bustling districts.

The franchisee has navigated post-pandemic challenges by prioritizing drive-thrus and app-based loyalty programs, achieving steady same-store sales growth despite inflationary headwinds.

Everstone’s exit after five years of stewardship reflects a calculated pivot, harvesting returns from initial investments while freeing capital for new ventures.

The incoming Ajanta family office brings pharma-honed supply chain expertise, promising resilient cold-chain logistics for fresh beef patties and localized menu innovations like spicy masala Whoppers tailored to Indian palates.

This deal arrives amid India’s QSR boom, where middle-class expansion fuels 12% annual sector growth through 2030.

Ajanta’s restaurant portfolio complements RBA’s ambitions, potentially fast-tracking 1,000-store milestones via tier-2 city penetrations and airport kiosks.

The Rs8 billion injection targets tech upgrades, AI-driven kitchen displays and predictive inventory, slashing labor costs by 15% while boosting order accuracy.

Indonesia’s 300 million consumers offer parallel upside, with halal-certified tenders capturing Muslim-majority demand against local warung competition.

For investors, RBA’s trajectory signals strong multiples: 18-22% EBITDA margins rival Domino’s benchmarks, underpinned by franchise fees and royalty streams.

Ajanta’s operational rigor, proven in pharma distribution, insulates against veg-non-veg supply volatilities, positioning Burger King for IPO readiness post-infusion.

Strategic shifts counter McDonald’s dominance through value meals and combo bundles, reclaiming 5-7% market share in India’s US$5 billion QSR arena.

The family office’s long-term horizon favors sustainable scaling over quick flips, eyeing hotel adjacencies for breakfast partnerships and event catering.

As urban millennials prioritize convenience, RBA’s revitalized war chest blends Ajanta’s precision with Burger King’s craveable appeal, fortifying Asia’s fiercest fast-food battleground for enduring dominance.

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.