Sagar Ratna founder Jayaram Banan regains control

Banan took full control of the venture after six years

Jayaram Banan, founder of the south Indian restaurant chain Sagar Ratna, took full control of the venture after six years. Banan, who had sold 77 per cent stake in Sagar Ratna Restaurants Pvt Ltd to Fander Equity Holdings in 2011 for Rs 135.7 crore, bought the stake through his company Ocean Pearls Hotels Pvt Ltd for an undisclosed amount last week after months of negotiation.

During the past six years, disputes over management and operations of Sagar Ratna had emerged a number of times between Ocean Pearls Hotels and Fander Equity. Last year, Fander Equity had put up its stake for sale. 

“This is like finding my lost child,” said Banan, chairman of Ocean Pearls Hotels, through which he now owns 100 per cent stake in Sagar Ratna Restaurants Pvt Ltd. 

Since 2011, when Fander Equity took control of the chain, Sagar Ratna has added 46 outlets. Currently, Sagar Ratna has 95 operational restaurants, mostly in the northern part of the country. According to Rohan Banan, managing director, Ocean Pearls Hotels, the firm now wants to expand the number of outlets to 300 by 2020. 

While Ocean Pearls Hotels will open 100 outlets in Tier-I and Tier-II towns, apart from metros, another 100 outlets will be franchised. Currently, 33 Sagar Ratna outlets are owned and operated by the company and rest 52 are franchise outlets.

“We are also looking for master franchises for GCC (Gulf Cooperation Council) countries, the US, the UK, Canada and Australia. Hopefully, we will be able to sign such agreements in the next six months,” Rohan Banan said, adding that he expects Sagar Ratna outlets in the US and GCC countries by 2019.

The firm also plans to expand its south-India-based snacks business to other parts of the country. It is also working on opening two more Ocean Pearls hotels in the next few years. 

Its non-vegetarian restaurants chain Swagath will be expanded to 50 outlets from 17 currently. The initiatives will require investments of Rs 80 crore over the next two years, Rohan Banan said.