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Source: Business Line
By:
Business Line,
Friday, January 9,2004
The four-year-old Barista Coffee Company Ltd aims to be the number two coffee retail chain globally over the next decade. The company, which at present has some 130 outlets, plans to add another 50 in the current year, the company CEO, Mr. Yogesh Samat, Said.
In an informal chat with the media, Mr. Samat said the company aims to be number two globally in terms of brand imagery, brand dominance, consumer franchise and turnover and has charted out aggressive plans to achieve that. However, Mr. Samat declined to comment the kind of funds that the company has earmarked to invest in growing its operations.
Barista, which expanded its operations to Sri Lanka and Dubai recently, plans to branch out into Kuwait over the next four months, he said, "Our growth over the next few years will primarily come from Asia, especially India and neighbouring countries," Mr. Samat said, adding that the company would look at tapping the non-Asian market after few years. The international sales account for 10 percent of Barista's business at present, he said.
At present, Starbucks dominates the coffee retail chain segment and has about 6,000 outlets worldwide. The number two slot is wide open and there are many players with less than 1,000 outlets and the segment is fragmented, he said. Barista considers itself to be among the top 15 players at present, he added.
Commenting on Starbucks' proposed entry into the Indian market, Mr. Samat said, "We will not take it lightly and continue to build on our own experience and brand." Barista will continue to strengthen its India operations, he said, adding that the company has recently scaled up its supply chain, human resources and invested in IT.
Mr. Samat declined to comment on the Barista's initial poublic offer plans and said that the company has adequate funds to meet its requirements. Mr. Samat also chose not to comment on the rumors that the Tatas were planning to increase their stake in the company. The Tatas own 32 percent stake in the company, while Turner Morrison has 60 percent and the employees own the rest. He also declined to comment on the company's sales and bottomline.
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