The Hindu Business Line : RK Jaipuria group to invest Rs 150 cr in Costa Coffee chain

BRITISH coffee retail chain Costa Coffee is planning to open 300 outlets in India through a franchise agreement with the RK Jaipuria Group, which will invest Rs 150 crore in the project over the next few years.

"We envisage an investment of Rs 150 crore in the next three years, during which we expect to achieve the target of opening 300 outlets in India," Mr Ravi Jaipuria said while announcing the opening of the first Costa Coffee outlet in Delhi today.

Costa Coffee plans to open around 20-25 outlets in the National Capital Region in the current year following which it would expand to Mumbai and Bangalore.

As per Costa's agreement with Devyani International, a part of RK Jaipuria Group, the British Group will supply coffee beans from its roastery in the UK and provide the technical support.

"This is not only our first outlet in India, but also the first in Asia. This is in keeping with our aggressive expansion plans in Asia and Costa's ambitious targets of opening 2000 outlets across the globe in the next five years", Mr Nick Williams, Costa Coffee's franchise and commercial director said.

The coffee at the local outlet has been priced on a par with competing chains such as Barista and Café Coffee Day.

Coffee consumption is on the rise in India and has increased from 55,000 tonnes to 75,000 tonnes in the last three yeas after decades of stagnation.

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