The Hindu : Business : illycaffe, Sterling to expand chain

Online edition of India's National Newspaper
Saturday, Oct 01, 2005

Business

Business

illycaffe, Sterling to expand chain

$20 million joint investment with Italian company for installing coffee machines

NEW DELHI: The Sterling group, which owns Barista Coffee Company, has tied up with Italy's illycaffe to jointly invest up to $20 million over the next five years for installing 6,000 coffee machines.

As part of the agreement, Sterling Infotech group's Fresh & Honest Cafe Ltd (F&H) will be illycaffe's exclusive distributor in India and will be responsible for taking illy products to consumers.

"The partnership agreement includes an investment of $15-20 million over the next five years to install coffee equipment and establish the illy brand in India,'' Sterling Infotech group founder C. Sivasankaran told a press conference here.

The Chennai-based F&H will install the espresso machines in hotels, cafes and restaurants apart from corporates and public places.

Besides addressing multiple revenue streams through a combination of products, both hot and cold, made from illy espresso beans and ground coffee, F&H will address the out-of-home and at-home markets.

"Our research shows that a category of consumers in India are demanding premium international brands. Up to now illy availability has been restricted to some luxury hotels. We see a significant opportunity in expanding our reach to the end consumers,'' illycaffe's Andrea Illy said.

Mr. Sivasankaran said the partnership with illycaffe would enable F&H to offer the complete range of coffee experience to customers.

The Sterling Infotech group acquired 100 per cent stake in the coffee chain outlet Barista last year. At present, Barista has 130 outlets throughout the country and will have over 250 shops by 2006-end.— UNI

Printer friendly page
Send this article to Friends by E-Mail

Business

News Update

Stories in this Section