|

Company Snapshot : Cafe Coffee Day

  • Jul 14th, 2017

1.About the Company:

Cafe Coffee Day is the largest cafe retail chain in India with its headquarters in Chikkamagaluru, Karnataka. It is a part of the Coffee Day Global Limited, a subsidiary of Coffee Day Enterprises Limited. The first cafe was opened in 1996 at Brigade Road in Bangalore and now, it operates with more than 1600 outlets spread across India that is commonly known as Coffee Day or CCD. The Company follows vertical integration business model and is involved in plantations, growing of the coffee beans, manufacturing of coffee machines, and in making furniture for the outlets. Apart from following a verticle integration model, the company has also expanded its business in other areas like logistics, financial services etc and has a vast product and service portfolio. CCD also started making its presence outside India with its outlets in Austria, Czech Republic, Malaysia, and Egypt.

2.History: 

  • 1993 - Incorporation of Amalgamated Bean Coffee Trading Company Limited (ABCTCL)
  • 1995 - Launch of the brand “Coffee Day” through Fresh & Ground Retail stores.  
  • 1996 - First Cafe Coffee Day Outlet was opened on July 11, 1996, at Brigade Road, Bengaluru, Karnataka
  • 1999 - Take over of retail financial services operations of Sivan Securities Limited and launch of its financial advisory and services firm, Way2Wealth.
  • 2000 - Made an investment in Mindtree Limited through its subsidiary, Coffee Day Trading Limited
  • 2001 - Launch of Software Technology Park
  • 2005 - Launch of  first International Cafe in Vienna, Austria
  • 2006 - Tanglin, the subsidiary of CCD launched Global Village, a SEZ tech park in Bengaluru.
  • 2007 - 500th CCD outlet opens
  • 2008 - Launch of Coffee Enterprises Limited (CDEL)
  • 2010 -  Opened 1000th CCD outlet. Private equity investment by KKR, Standard chartered and New silk Route in CDEL
  • 2011 - Acquisition of Sical Logistics by its subsidiary Tanglin
  • 2014 - Opened 1500th CCD outlet 
  • 2015 - Public listing of CDEL

3.Operations:

  • 1682 cafes ( as of 31st March 2017)
  • 41,845 vending machines ( as of 31st March 2017)
  • 579 Xpress kiosks ( as of 31st March 2016)
  • 415 Fresh & Ground outlets.    ( as of 31st March 2016)   
  • Located in 231 cities all over India( as of 31st March 2016)

** The above chart is in accordance with Q3 FY 2016       

4.Leadership Team:

  • Mr. V. G. Siddhartha - Founder, Chairman and Managing Director
  • Mr. S.V. Ranganath - Independent Director
  • Mr. M. D. Mallya - Independent Director
  • Dr. Albert Hieronimus - Independent Director
  • R. Ram Mohan - Chief Financial Officer

5.Promoters:

The distribution of shareholding (category wise) as at March 31, 2016 is as under:

 

6.Number of Employees:

 The number of employee of the Company including all subsidiaries as on 31st March, 2016 was 17,825 including 5,202 temporary employees and contractual workers.

7.Products & Services:

  • Cafe Coffee Day Outlets - Over 1600 cafes, located in 231 cities all over India. Serves signature coffees like the Iced Eskimo and sandwiches, burgers and sundaes.     
  • Cafe Coffee Day Lounge - CCD Lounge was launched in 2010, targeting trendy and affluent customers with high income. Currently, its running 40 outlets across 15 cities in India, which serve a mix of exotic coffees, teas and international cuisine.
  • The Square - Aimed at the well-travelled coffee aficionado, this premium cafe offers exclusive single-origin coffees of the world, that are crafted by master brewers who have lined up blends from Latin America, Africa and India. It also offers a variety of food complementing  the range of coffee.
  • Cafe Coffee Day Value Xpress - The CCD’s on-the-go food and beverage kiosk was launched in 2003. Over the years, the number of CCD Xpress outlets have increased to  579  kiosks across 12 cities in India. This verticle is focussed across high-demand locations like corporates, institutions and hospitals.
  • Coffee Day Fresh & Ground - This division serves fresh beans and powder to customers through 400 F&G outlets across 7 states in India. CCD also introduced a specialized coffee machine called ‘Kaapiguru’ for F&G businesses, which is used by a large number of restaurants and eateries.            
  • Coffee Day Beverages - It is the largest “fresh milk and roasted coffee beans” vending machine chain, with over 35,000 machines in India currently. CCD has recently entered into a joint venture agreement with the WMF Group for jointly manufacturing automatic and semi-automatic coffee machines. These co-branded products are focused on the hotels and corporate sector.
  • Coffee Day Exports - Coffee Day is one of India’s leading coffee exporters with clients across Europe, the Middle East, Southeast Asia and North America.
  • International Cafes - First international cafe opened in Vienna in 2005. Now, they have 18 outlets in places like Austria, the Czech Republic, Egypt and Malaysia.

8.Revenue & Profit (in Rs. cr):

The average sales revenue per day for single outlet of CCD store stood at Rs 14,898 which was Rs 12,909 last year. Consolidated Profit & Loss of Coffee Day Enterprises for the last three fiscal year.

Particular/ Year

FY 2016            

FY 2015           

FY 2014         

Total Revenue

2835.41

2479.36

2287.01

EBIDTA

546.86

442.94

381.31

Net Profit

-80.7

-155.74

-135.90

 

9.Competitors:

  • Starbucks : It is a 50:50 joint venture between TATA Global Beverages and Starbucks Corporation and named as Tata starbucks Private limited.
  • Barista Lavazza : Barista is the chain of  Indian espresso Bars, which was established in 2000 and was taken over by  Lavazza in 2007. It was the fastest brand to have been included in the list of super brands and among the top 50 phenomena that changed India. Lavazza sold the coffee shop chain to Carnation Hospitality Pvt. Ltd in 2014.
  • Mochas : Established in 2001 in Churchgate- Mumbai, Mocha is the country's first completely indigenous and eclectic café chain, known for its  menu and varied experiences and currently operating with 14 outlets in 12 cities.
  • Costa Coffee : The world's second largest coffee chain and UK’s largest coffee chain, Costa Coffee is a British multi-national coffee house, headquartered in Dunstable, Bedfordshire, its a wholly-owned subsidiary of Whitbread.

10.Subsidiaries:

  • Tanglin Development Limited (Technology Parks): wholly-owned subsidiary, engaged in the business of developing technology parks in Bengaluru and Mangaluru. In 2015-16 Tanglin development had a total occupancy of 3.2 million sq ft from 2.91 million sq ft last year. Revenue for FY 2016 - Rs. 125 cr.
  • Sical Logistics Ltd (Logistics): Founded in 1955. It is one of India's leading provider of integrated logistics solutions with 5 decades of experience in handling bulk commodities. Sical logistics currently offers mining and cargo handling solutions. It also offers warehousing facilities along with last mile distribution and cold chain services to retailers. Revenue for FY 2016 - Rs. 810 cr.
  • Coffee Day Trading: It is a subsidiary established in 2000 to provide companies with access to capital. Started with investing in Mindtree, a global IT consulting firm . They have also made other investments in Ittiam Systems, Global Edge Software Limited and Magnasoft.
  • Way2Wealth Securities Pvt Ltd. (Financial Services) : CCD group has a 85.53% equity holdings in this subsidiary, which is an investment advisory company that offers a wide range of financial products, advice & services, with a pan-India branch network. They currently cater to an array of retail, institutional & corporate clients.  Revenue for FY 2016 - Rs. 432.3 cr.

**The above Pie chart is based on Annual Report- FY 2016

11.Mergers & Acquisitions:

  •  Coffee Day Resorts Pvt. Ltd., Tanglin Retail Realty Developments Pvt. Ltd, acquired 15% stake in Sical Logistics Ltd for Rs.200 crore in 2016.
  • Company Acquired Czech Republic café chain – Café Emporio at Rs 15 crore in 2010.

12.Awards:

  • In 2014, Mr. V G Siddhartha (Promoter) was awarded with ‘ET Retail Hall of Fame’ for his contribution to the growth in retail sector.
  • In 2014, Cafe Coffee Day was ranked as 22nd Most Trusted Service Brand in India, 27th Most Exciting Brand in India and as the 2nd Most Exciting Brand under the category of “Food Services” in India, according to a survey done by Brand Equity (Economic Times)
  • In 2014 Coffee Day Global was awarded “Retailer of the Year” (Organisation Food and Grocery) for retail excellence by ABP News
  • In 2012-13, Coffee Day Global was awarded bronze prize by the Coffee Board of India for being the 3rd best exporter of green coffee.
  • Coffee Day Global was awarded the Best Retailer award under the category “Best Customer Service in Cafe Restaurant” by Star Retailer Awards 2013.
  • In 2013, Cafe Coffee Day was ranked as the 26th Most Trusted Service Brand in India by Economic Times

13.News:


You may also like the following articles: