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Source: Business standard
By:
Business standard,
Bangalore,
December 24, 2004
Targeting a $20 million investment in the next three years with a 25 percent annual growth in turnover, Coffee Day is planning to increase its worldwide café network to 500 by 2006.
Its parent company, the Rs.300 crore Amalgamated Coffee Beans (ABC) has taken major incentives in setting up vending machines, kiosks, branded filter coffee and marketing tie-ups as part of the expansion plan.
"We are swiftly moving towards building a mass customer base with specific focus on the young generation. Our initiatives are pegged to result in a 25 percent annual rise in revenues in the coming years, from the present 300 crore", group chairman VG Siddhartha said here.
He said around #20 million will be invested in the next three years, mostly thourgh internal generation with 64 coffee cafes likely to come up in the next six months.
Resources are not much of an issue, he said pointing out that the company has over 5,000 acres of plantations on one hand and large stocks portfolio in major technology companies on the other.
He said for product expansion in its coffee business, the company has moved into packaged sales and tied up with Glaxo Smithkline to distribute its "Perfect" brand.
"It is an opportunity to be seen at more than 1.5 laksh retail outlets in South India alone", Siddhartha said. ABC plans to expand its 'Fresh'n' Ground' filter coffee outlets from Bangalore to the whole of South India, he added.
Siddhartha said 22 different flavours were being sold through the 344 coffee points or 'Fresh'n'Ground' outlets, planned to be increased to 400 by June next and 500 by 2006.
He said available in two blends, 'Fresh'n'Ground' packaged coffee powder is sold with an assurance that no pack is more than seven days old.
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