The Hindu Business Line : Kaapi Machines to tap coffee equipment market

The Coimbatore-based Eltex Group, German grinder maker Mahlkonig GmBH and Italian espresso machine vendor C.M.A. SpA, have come together to float a joint venture, Kaapi Machines India Pvt Ltd, to tap the emerging coffee equipment market in the country.

Kaapi Machines, which will have a 33.3 per cent stake by each of the three entities, will bring under its umbrella the expertise in the marketing and servicing of coffee making equipment, including grinders from Mahlkonig and espresso machines of C.M.A.

Mr Suresh Jagannathan, managing director of Eltex Group, said the joint venture was targeting revenue of Rs 25 crore in the next three years. "We are entering the market at the right time, when the consumption of coffee is burgeoning," he said.

Focus on South, initially

Kaapi Machines will be headquartered in Coimbatore and plans to cover cities such as Chennai, Bangalore and Hyderabad in the first phase and later establish itself in the North."Our attempt is to offer the retailer world-class equipment under one roof, thereby obviating the necessity of going to multiple importers and suppliers," he said.

"We have been marketing our equipment in India through Eltex for sometime now and are happy to consolidate our presence through this alliance," said Mr Nils Erichsen, General Manager, Mahlkonig.

Mr Flavio Urizzi, manager, international business, of CMA, said India holds enormous potential for the coffee machines as consumption has been growing in recent years. CMA has been in the Indian market for the past few years and has already sold some 270 espresso machines through its partner Café Coffee Day.