|
|
Coffee retail market to see Rs 350 cr investments in 3-5 years
As coffee culture gets bigger in India, a traditional tea drinking nation, domestic and international chains are lining up big expansion plans to the tune of nearly Rs 325 crore in the next 3-5 years.
Major players like Barista, Costa Coffee, Cafe Coffee Day and Barnie's are already working overtime to expand their presence in the country and implement product portfolio overhauls.
On the other hand, global player Starbucks Corporation is all set to make its India debut in 2007. The latest to announce big plans for expansion in the Indian coffee retail market is UK-based coffee shop chain Costa Coffee. The company's master franchisee, Ravi Jaipuria Group company, Devyani International (DIL) has earmarked an investment of Rs 150 crore to set up 300 outlets in the next five years.
Dil, like other chains, is looking to cash in on the booming coffee retail market in India, which is expected to grow at an annual rate of over 30 per cent in the next couple of years on the back of patronage from the young population in the 18-25 age bracket with a growing disposable income.
"We will have 25 outlets by the year end," DIL president and CEO Virag Joshi said adding that outlets would come up at Jaipur, Agra, Lucknow and Punjab. The company is planning to invest over Rs 20 crore in the next one year during which the chain would open 30-35 outlets in Mumbai.
Dil opened 15 stores in the first year of operations, with an investment of about Rs 15 crore, in Delhi and the National Capital Region and plans to add 10 more by December this year.
Another major player, Cafe Coffee Day has already made plans to open 168 more outlets across India by June 2007.
"At present, we have 332 outlets across 70 cities and are looking to open 20 cafes every month to take the number to 500 by June 2007," Cafe Coffee Day senior general manager (marketing) Sudipta Sen Gupta said.
Part of Amalgamated Bean Coffee Trading Company, Café Coffee Day is looking at an investment of Rs 35-50 lakh per outlet.
While existing players are looking at consolidating their businesses, US-based coffee giant Starbucks is planning to enter India with its expected debut in 2007.
"We are looking forward to offering the finest coffee in the world to customers in this country withinthe next 18 months," said Starbucks' spokesperson /T. May Kulat.
|
|
