ChrysCapital to whip up a $200 million dessert storm

India-focused private equity firm ChrysCapital is sweetening its portfolio with a $200-million push into the desserts space, following last month's acquisition of patisserie chain Theobroma, two people familiar with the matter said on condition of anonymity.

- Sneha Shah & Priyamvada C. MUMBAI/BENGALURU

"The idea is to use Theobroma as an anchor to make bolt-on acquisitions in the segment, and the investment firm plans to buy about 2-3 assets," the first person said, adding that frozen desserts and ice cream brands will also be considered.

"The plan is to leverage the back-end operations that Theobroma has for the other brands as well," the second person said.

A bolt-on strategy enables larger firms to buy smaller businesses to expand operations, diversify offerings, or reach new markets.

The development comes after the private equity firm bought an 85% stake in the desserts chain last month. It is the first transaction in the consumer foods space for Chrys Capital, which has traditionally focused on sectors such as pharmaceuticals, healthcare and financial services. To be sure, ChrysCapital is not strictly a buyout firm-so far, it has stuck mostly to buying smaller stakes or coinvesting with other firms.

Theobroma deal The reportedly valued the Mumbai-based quick-service restaurant (QSR) chain at *2,400 crore, Mint reported in August.