The Hindu Business Line : Barista to invest Rs 250 crore on expansion

This includes expanding the chain of Barista stores over 10-fold to 1,200 outlets in the domestic market and a quantum jump in revenues over the next four years.

The total investment needed for this expansion is being pegged at Rs 250 crore, of which at least Rs 50 crore will come from Mr Sivasankaran, while the remaining will be put in by franchisees.

Mr Sivasankaran controls about 65 per cent stake in the coffee company while the remaining 35 per cent rests with the Tatas.

Asked whether Mr Sivasankaran had any plans to acquire 100 per cent of the company and perhaps then sell it to foreign coffee majors such as Starbucks, the Director on the board of Barista, Mr T.V. Krishnamurthy, told Business Line: "Right now, both partners are fully committed and the growth plan is being rolled out. Where is the question of equity changing hands? No negotiations are happening between Mr Sivasankaran and the Tatas that I know of."

Mr Krishnamurthy, who represents Mr Sivasankaran on Barista Coffee's board of directors, said the chain was expected to cross Rs 900 crore in revenues over the next four years, taking into account expansion in both the domestic and overseas markets .

Initially, the coffee chain was promoted by the Turner Morrison Group. In April this year, Turner Morrison sold its about 65 per cent stake in Barista for roughly Rs 30 crore to Mr Sivasankaran's Chennai-based Sterling Infotech group, which owns the Fresh and Honest Café vending brand. Barista now has a small presence in three countries, including an outlet in Dubai.

Sources said the company has already begun conducting a market feasibility study to launch its coffee parlours in more regions within South Asia such as Bangladesh, the Maldives, Bhutan and the Mauritius. It has also decided to set up 15 additional outlets in Sri Lanka.

More Stories on : Outlook | Retailing | Coffee

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Cipla slashes anti-AIDS drug prices by 30%

Honda to make alterations in Accord cars

Ritspin Synthetics to enter garments business

IOC to leverage expertise for overseas contracts

Ranbaxy to market UK co's diagnostic kit

`IBP will maintain identity as IOC's marketing division'

Micro Inks leaves indelible mark — From Vapi to Washington Post

Book on business ethics released

Barista to invest Rs 250 crore on expansion

Directors' pay rises faster than staff's