Barista's second manufacturing unit by year-end
Soon after Italy's Lavazza group acquired 100 per cent stake in Barista Coffee
Company in the end of first quarter 2007, Barista Coffee Company is now planning
to set-up its second manufacturing facility in Mumbai by 2007-end. At the new
facility, the company plans to manufacture food and beverages apart from non-chocolate
desserts and savouries, informed Rini Dutta, vice president - marketing and
product development, Barista Coffee Company.
According to Dutta, This is to make sure food products are delivered at
a faster pace at the Barista coffee retailing outlets located in
the vicinity closer to the manufacturing facility in Mumbai and thus meet the
evolving needs of younger generation for innovative products. But, prior to
the move, we would start manufacturing similar food products at our existing
manufacturing facility based in Delhi, beginning December 2007 onwards.
While Barista Coffee Company is selling Lavazza coffee through Barista
coffee outlets, it is very likely that Lavazza group may look at setting up
Lavazza chain of coffee retailing outlets in India. The group currently
has 'Lavazza' outlets in Italy and neighbouring countries.
Besides, Barista Coffee Company is also planning to make its 60 Barista
coffee retail chains wi-fi enabled by the end of 2007. For the purpose, the
company is currently in talks with IT majors., "The move is in sync with
the emerging trend in the global market where most global coffee retail chains
are wi-fi enabled so as to provide customers today's young generation the latest
technological facility which they would witness in the global market as well."
However, Dutta refused to divulge details about the IT company with whom Barista
Coffee Company would tie-up with.
Barista Coffee started its operations in India in 2000 and has set up 160 Barista
coffee retail outlets with a strong focus on northern and western markets. Plans
are on the anvil to set up additional 50 company-owned outlets in southern and
eastern markets as well. Besides, we are also talking to major retail chains
such as Reliance Retail, Bharti Retail apart from various real estate developers
to set up Barista outlets in Mumbai, Delhi and other metros," Dutta added.
This is in line with the company's strategy to open outlets in high street locations,
malls and corporate IT parks.
According to Gibson Vedamani, chief executive officer, Retailers Association
of India, At 25 per cent - 30 per cent, the organised coffee retail segment,
which stands at about Rs 400 to Rs 500 crore at the moment, is galloping. The
organised portion is just a fraction of the unorganised sector. The overall
non-alcoholic, non-carbonated beverages (tea and coffee, that is) market is
pegged at around Rs 8,000 to Rs 10,000 crore. However, domestic retail chains
such as Cafe Coffee Day, Mocha, Qwikys and Coffee World are ramping up operations