Coffee Day Enterprises expects the number of coffee shops in India to more than double to 5,000 across brands over the next five years, fuelled by rising income levels of and aspirations among the youth.
About 1,000 of these cafes will come up along highways alone to serve people looking for a decent place to take a break from driving, the company said.
“We will, of course, continue to lead the market,” VG Siddhartha, the 55-year-old founder of the Coffee Day Group, said at a press conference here on Monday. There are currently about 2,000 such outlets in the organised sector in the country.
Coffee Day Enterprises, the parent company of the Coffee Day Group, which houses Cafe Coffee Day, plans to raise ` . 1,150 crore through an initial sale of shares that opens on October 14. About . 632 crore of the funds raised will ` be used to retire debt and ` . 287 crore will be spent on its coffee business.
“Between now and the next five years, whatever money we raise will only go for expanding the coffee business,” the Coffee Day founder said.
Bengaluru HQ, Cafe Coffee Day is the largest coffee-shop chain in the country with about 1,500 outlets, which is about four times the combined number of its largest four rivals, including Barista, Costa Coffee and Starbucks.
The group will open 135 stores and add 5,000 vending machines in India every year, Cafe Coffee Day CEO Venu Madhav said.
“This is the strategy we will follow for all international expansion and this will save us from capital expenditure,” Madhav said.
Source : ET, Oct, 2015