Kolkata-headquartered Rossell India Ltd is planning to roll-out an Indian fast-food chain by this fiscal through its newly created Rossell Hospitality division.

The company is also eyeing opportunities to enter the hotels sector.

“Details on the fast-food chain are yet to be worked out. Initially we plan to roll-out one or two outlets tentatively in Delhi, in a couple of months,” the Vice-President (Finance) and company secretary, Mr N.K. Khurana, told Business Line .

Responding to queries if the outlets will be set up and run through any collaboration, Mr Khurana said that Rossell Hospitality plans to go alone. He also ruled out the franchise model “at the moment”. “I don't think we have planned anything at the moment,” he said when asked about the possibility of a franchise partner.

Rossell India, formerly known as Rossell Tea, reported revenues of Rs 76 crore last fiscal. The company has three divisions – Rossell Tea, Rossell Techsys and the newly created Rossell Hospitality.

Hotels

On possible entry into the hotels sector, Mr Khurana said that the company is already a minority partner in three of Lemon Tree Hotels.

The company has “investments” in Lemon Tree's Vembanad Lake Resort at Alleppey, Kerala. It also has investments in Lemon Tree's upcoming hotels in Delhi and Bangalore.

In the longer run, however, the company is considering an entry into the segment with a controlling stake. “We have an interest to enter the sector (with a controlling stake),” Mr Khurana said.

Following the announcement, Rossell India's shares on Tuesday closed at Rs 35.65, down by nearly 4 per cent, on the BSE.

Related Topics
comment COMMENT NOW