MUMBAI, May 19 -- Consumer-focused private equity firm L Catterton, among others, is in talks to acquire a stake in Bengaluru-based restaurant chain Nandhana Palace, three people familiar with the matter said. "The investment firm may likely acquire a minority stake in the business," one person said. "The Andhra-cuisine restaurant chain is also in discussions with other funds, but L Catterton may likely have an edge, given its deep expertise in the consumer sector," a second person said. Mint reported in December that Nandhana had sought a valuation of Rs.2,000 crore when it was in talks with Dubai-based investment firm Pulsar Capital, but that did not materialize. That valuation was at the higher end and may evolve or change, depending on the buyer, two of the people said. "While the final terms are yet to be signed, the deal is still undergoing due diligence," a third person said. L Catterton and Nandhana did not respond to Mint's requests for comment. L Catterton is 60% owned by private equity firm Catterton and the remaining 40% is jointly owned by French luxury brand LVMH and Groupe Arnault. The firm manages $40 billion of equity capital and has made over 300 investments in consumer brands globally and in India. Its portfolio companies include Drools, Sugar Cosmetics, Farmley, Haldiram's, Healing Hands Clinic and Jio Platforms. Nandhana Palace, founded in 2004 by Ravichandar Ramaswamy, is an Andhra-style restaurant chain with 27 outlets across Bengaluru and Chennai. Ramaswamy's daughters later joined the business to build what the company described as a "tasty yet healthy food" brand that reflects the cuisine's culture, environment and flavours. The Nandhana group is expanding to other Indian cities. The company said it has grown by offering a range of formats from fine dining to indoor parties, according to its website. Nandhana Foods Pvt. Ltd, which operates the chain, reported consolidated revenue of Rs.316.1 crore in FY25 from Rs.218.1 crore a year earlier and a profit of Rs.28.2 crore compared with Rs.11.9 crore in FY24, according to ministry of corporate affairs filings sourced from Tofler....