Café Coffee Day (CCD), the coffee chain started by Bangalore-based Amalgamated Bean Coffee Trading Company (ABCTCL), is brewing more expansion in the domestic market even as it looks overseas for acquisitions to become a global brand.
Eyeing smaller ‘Tier II’ towns beyond the metros, the chain plans to invest Rs 150 crore to increase its current retail strength of 970 stores to 1,150 by the year-end.
“The growth story in India cannot be talked about without including non-metro locations. Tier II towns today are contributing more to growth,” said Alok Gupta, director, CCD, at an event to unveil the coffee chain’s new brand identity.
The company claims small towns and cities are posting good growth and at present contribute two-thirds of CCD’s total revenues. Seeing a large opportunity in non-metro cities, the coffee chain is rapidly expanding presence in cities such as Jamshedpur, Shillong, Vishakhapatnam etc.
CCD, which has 16 outlets outside India, is also eyeing foreign acquisitions. It recently acquired a Czech Republic-headquartered coffee retail chain. In future, it will look at the Middle East and the Far East. “At present, the foreign shores contribute only 1 per cent to our overall revenues. By 2015 we will be in a position where the retail presence outside India will contribute at least 10 per cent to our overall revenues,” said Gupta.