UK-based coffee shop chain Costa Coffee is embarking on an expansion drive in India, which will see its master franchise Ravi Jaipuria Group company Devyani International Ltd invest Rs 150 crore to set up 300 outlets in the next five years.
"In the next five years, we will have 300 outlets across the country which will see an investment of about Rs 150 crore," DIL President and CEO Virag Joshi told PTI.
Asked about the funding for the investment, Joshi said the company would be financing it entirely through its equity.
The company opened 15 stores in the first year of its operations, with an investment of about Rs 15 crore, in Delhi and the national capital region and would add 10 to the number by December this year.
"We will have 25 outlets by the year end," he said adding that outlets would come up at Jaipur, Agra, Lucknow and Punjab.
DIL is planning to invest over Rs 20 crore in the next one year during which the chain would open 30-35 outlets in Mumbai.
"By the middle of next year, the chain, which is present only in Delhi and the National Capital Region, will enter the Mumbai market," he added.
He said the company is also weighing the option of opening outlets where stores like Pizza Hut and Costa Coffee, the franchisee of both is with his company, would be set up in a single space.
"There are models like these in the UK and we would like to try at least one such project here. But we still have to work out the details," he added.