Following exit of the Kolkata-based Dhanukas of the Dhunseri group from the restaurant business in India, Chandra Kumar Dhanuka, Chairman, Dhunseri Ventures Ltd, has said that the focus now is “on growing the cakes and confectionery vertical in Singapore”.

Dhunseri operates in the segment through a wholly-owned subsidiary, Twelve Cupcakes Pte, where it had acquired a majority stake in 2017 as a part of its diversification exercise. Twelve Cupcakes is expected to generate profits for FY21 (to be included in consolidated results of Dhunseri Ventures) and is expected to have a topline contribution of ₹65-70 crore (Singapore $12-13 million).

Apart from this, the petrochemicals business and upcoming polyester films unit in Bengal (at an estimated investment of over ₹400 crore) will continue to be the focus.

Tea business

“We will also concentrate on the tea businesses in India and Africa,” he said. The tea business – one of the oldest verticals of the group – was demerged into another listed company, Dhunseri Tea and Industries Ltd with tea estates in Assam and Africa.

In 2019, the company sold the packet tea brands – Lal Ghora and Kala Ghora – to Tata Global Beverages for ₹101 crore. Dhunseri Tea had a consolidated revenue from operations of ₹325 crore and a net profit of over ₹55 crore for the April-December 2020 period.

Background

In May 2017, the Dhunseri group had expanded into food space - from their then core businesses of petrochemicals and tea - through a master franchisee agreement with USA-based pizza restaurant chain, Uno Pizzeria & Grill.

Months later, they roped-in Harshavardhan Neotia of Ambuja Neotia and Choicest Enterprise was offered a controlling stake in the group’s food venture. Now, on Monday, Dhunseri group exited the restaurant business in India; and has divested their 25 per cent in the joint venture in favor of Ambuja Neotia Group for ₹72,500 at 0.01 paise per equity share.

The JV faced had a loss of ₹2.67 core as per stock market notifications. There are three Uno restaurants in India, set up since 2019, – one each at Kolkata, Delhi and Bengaluru. Their expansion plans were, however, hit due to the pandemic.