Coffee Day Holdings, the Bangalore-based Rs 800 crore coffee exporters and retailer, is eyeing a bigger share of your wallet by enhancing its offerings of meal options by launching 'HungerMood' a new enhanced range of offerings in an effort to be a complete food & beverage player.
Coffee Day Holdings, which runs India’s largest chain of coffee bars – Café Coffee Day, has been experimenting with a range of options of increasing the share of wallet from a customer by offering snacks and munching options along with its range of coffee. The company also offers quick meals at some of its select outlets. Right from burgers to low-calorie options to sweets section, the company is expanding its range of delicacies.
Coffee Day Holdings has been constantly diversifying its range of offerings starting from coffee to cookies to pastries and with this step to start this extended offerings is in a way being considered as an attempt to compete with McDonalds in India. “It’s still a long way. But this attempt is a move towards that positioning,” sources in the company noted.
Even as the company is planning this diversification, it is also planning to expand its number of cafes to around 1,000 from the current mark of 800. The chain also has presence in the United States, Vienna and in Pakistan and is planning to dot more global locations. It is estimated that around 6 million people walk into Cafe Coffee Day outlets across India on a daily basis.
Industry sources further indicate that at a corporate level, the company is preparing to raise around Rs 400 crore through the private equity route, partly to replace the $150 million debt it had raised from Deutsche Bank and Darby Investments, a private equity arm of Franklin Templeton. Coffee Day had raised this debt in two tranches during end of 2007 and early 2008. The company will also be using these funds to expand its chain of coffee bars and also to expand its fledgling hospitality business.
Coffee Day Holdings is the holding firm for Amalgamated Bean Coffee Trading Company (coffee-growing and exporting business), Cafe Coffee Day, Coffee Day Hotels and Resorts, retail broking firm Way2Wealth, Global Technology Ventures (venture capital) and Tanglin Development, the real estate arm which has set up software parks in Bangalore, Mysore and Mangalore. It is also understood that the company has land bank near Pune in Maharashtra
Coffee Day Holdings was set up during last year to consolidate promoter’s holding in these firms. Coffee Day Holdings is promoted by V G Siddhartha, who started out as a coffee exporter having estates in Chikmagalur, around 250 kms from Bangalore. The company has around 5,000 acres of coffee plantation and is the second largest such firm in India.
