Start getting nostalgic about Nirula’s. After being in the market for a year or so, the country’s original western-style fast food chain, Nirula’s is finally tying up with Malaysia-based Navis Capital Partners to sell its operations.

According to sources, the deal is said to be in the range of Rs 85-90 crore. Sources say that the home-grown fast food chain was struggling to find a buyer for some time, primarily due to the high asking price. The asking price was said to be much in excess of Rs 100 crore.

For Nirula’s the deal comes after negotiations with Ravi Jaipuria and Phillipines-based Jollibee failed to take off. At one point it was also considering the possibility of an IPO. When contacted by ET, the Nirula's spokesperson refused to comment. Navis is not new to the foods business.

It is the largest shareholder in the Hong Kong-based KFC franchisee company — Birdland’s. Besides, it also has recently invested in Dunkin’ Donuts. It made its first investment in India in ‘04 by accquiring one of the largest airline catering companies.

Sources say the private equity player is planning a Mumbai office later this year and Nirula’s could be a perfect fit in its expansion plans. When contacted, Richard Foyston, founding and managing partner Navis Capital Partners, told ET that he could not share any details at the moment.

Sources say that Navis also wants to use the Nirula’s platform to get a bigger hold on the air catering business, especially with the Indian aviation sector growing in double digits. Analysts, however say that Nirula’s does not have a very attractive sales and profit multiple.

The only real asset for the family owned restaurant chain is real estate. One of the major reasons for Nirula’s to look for a buyer was the absence of a male heir. Both the Nirula brothers have two daughters each. Of late the fast food chain has been plagued by high employee turnover due to the uncertainty over the company's future.

It may be pointed out that another family member — Samir Kukreja — had also quit the business. North India-based Nirula’s currently has 64 outlets with 59 in NCR with a prime property in Delhi's Connaught Place under dispute. For Delhiites this was the primary fast food hangout joint.

However, with savvy fast food chains like McDonald's, Pizza Hut, KFC and Subway entering the Indian market, Nirula's had to expand its wings into Tier II towns. Besides, it diversified the brand into business hotels and waiter service restaraunts. Nirula’s also has ice cream parlours, pastry shops and food processing units.

(http://economictimes.indiatimes.com)