Coffee companies in a frothy battle
India's first coffee chain Barista has denied media reports that it was being taken over by another company.
The Sterling Group, which ownes Barista, said on Tuesday that it is looking forward to some major expansion plans to cope up with the rising competition in the coffee chain market.
"Sterling group is looking at a financial investor to dilute 15-20 per cent of equity in Barista without loosing management control," CEO, Barista Partha Dutagupta said.
Notably Barista, which has over 140 stores in India has lost market share to its archrival Cafe Coffee Day that currently has about 320 stores across the country.
However Barista hopes to catch-up by adding 100 more stores at an investment of Rs 50 crore in the next year. The company plans to enter 15 new cities and is planning to launch its lounge retail format called 'Barista Creme'.
With global leader Starbucks expected to launch in India next year, domestic players and other international coffee chains are in a rush to consolidate.
Meanwhile UK based Coffee chain, Costa Coffee has seen a growth rate of over 25 per cent in just one year and it plans to to add another 55 outlets in 2007 at an investment of Rs 35 crore in India.
The latest entrant to the coffee market is the US based Barnies coffee which has an aggressive growth plan in India.
"We will be opening 300 outlets over next five years in strategic locations in India. The company plans to invest Rs 75 crore towards its expansion," Barnies India President Gaurav Marya says.
So before the world leader arrives, the domestic players are stirring up their strategy and the to sip in the market share in coffee market.