Coffee Day Group brews expansion

Consolidating its core business, Amalgamated Bean Coffee Trading Company Ltd (ABCTCL), which runs Coffee Day coffee bars, is expanding its business divisions including Cafe Coffee Day (CCD), Coffee Day Xpress and Coffee Day Take Away.

One of the largest coffee conglomerates in the country, Coffee Day Group aims to capitalise on the growing popularity of coffee in India.

From a handful of cafes across six cities in the first five years of operations, CCD has now around 450 cafes in 84 cities, becoming the largest retail chain of cafes.

The division intends to set up 50 more cafes in 100 cities in the next two months, later on adding 250 cafes by next year. In its plans for other countries, CCD intends to set up 50 more cafes in several European countries to begin with by next year.

According to Simran Sablok, general manager - marketing, CCD, at present there are four cafes abroad, including two each in Pakistan and Vienna.

Apart from cafes in other countries, Coffee Day Group also exports green coffee beans through its division, Coffee Day Exports. Its annual exports amount to around 15,000 tonnes depending on the crop. The group grows coffee in its own estates of 6,000 acres and another 2,500 acres managed by it.

The group's expansion plans extend to increasing the number of Coffee Day Xpress kiosks from current 600 in the country as well as setting up at least 2,000 more coffee vending machines through its division Coffee Day Take Away. The division currently runs 7,000 such machines across the country.

Talking about the company's retail plans, Sablok said CCD would also be opening up to 12-18 more cafes on highways, apart from cafes in railway stations and airports.

It is also evaluating the possibilities of opening more speciality cafes like lounge cafes and WiFi-enabled cafes. CCD already has opened at least 5 lounge cafes in metros and would set up more depending on the demand.

Typically, a CCD cafe is spread across an area of 1,200-1,500 sqft and is set up at an investment of Rs 35-75 lakh per cafe depending on the size. Sablok added that the company would look to increase its share of the Rs 600 crore organised coffee market in India.

The group, which also manufactures its own blends of coffee and other merchandise for CCD, will begin to sell imported coffee machines in near future.