Rabo Bank buys out Aditya Birla PE's stake in Olive Bar

A fund sponsored by Dutch lender Rabobank has bought out Aditya Birla Private Equity's stake in restaurateur A D Singh-promoted Olive Bar and Kitchen for an undisclosed sum.
The India Agri Business Fund II has also bought stake from other unnamed shareholders and has become a "significant investor" in the company founded in 2000 that runs 33 outlets through brands like Olive, Fatty Bao, Toast and Tonic and SodabottleOpenerwala, an official statement said.
The statement said Olive has annual revenues of around Rs 200 crore with healthy margins and the company has notched a 28 per cent growth in revenues per annum over the last four years. The company is profitable.

"We see Olive as a great opportunity for scaling up our exposure in food services," Rabo's chairman Rajesh Srivastava said, adding that this is the first investment in the food sector for the fund in eight years.
According to a September 2016 news media report, Aditya Birla PE had invested around USD 10 million in Olive in 2012 and held 33 per cent stake.
The Rabo Bank statement issued today said the investment is entirely secondary, where it has bought shares from existing investors and does not entail any fresh issue of capital because the company is generating sufficient funds from internal accruals for expansion.

Welcoming the Rabo Bank investment, Singh said he is happy that Centrum, an investor of nine years, is staying even after the transaction.
"With the wealth of experience on our board between Rabo and Centrum, we can build a highly successful future together," Singh said.
Chandir Gidwani of Centrum said Rabo's sector focus, network and pedigree will help Olive in its next level of growth.