Date:21/07/2006 URL: http://www.thehindubusinessline.com/2006/07/21/stories/2006072103221300.htm

Back Sequoia invests $20 m in Amalgamated Bean Coffee

Our Bureau

New Delhi , July 20

Amalgamated Bean Coffee Trading Company Ltd (ABCTCL), which owns the popular retail chain, Café Coffee Day, has announced an equity investment of $20 million in ABCTCL by Sequoia Capital India, a leading venture capital firm.

The investment represents ABCTCL's strategic intent to expand and consolidate its position in the fast growing coffee industry, where it already enjoys a strong position thanks to its various brand extensions under the umbrella brand `Coffee Day'.

To supplement biz

ABCTCL will use the funds to supplement its business with a fast growing high margin line of products and services and will work on developing a larger international and national footprint for itself. The funding from Sequoia is in line with ABCTCL's strategy of consolidating its position as a leader in the coffee industry, the company said in a statement. Mr K.P. Balaraj, Managing Director, Sequoia Capital India, will be joining the company's board.

Looking for partners

Speaking on the investment, Mr V.G. Siddhartha, Chairman, ABCTCL, said, "We see a significant opportunity to build ourselves into a strong market leader in the food services and coffee business globally, and will leverage our dominant position in India to build a strong international presence. We are actively looking for well-managed companies in the US and European markets that we can partner with or acquire to help build a diversified, global business."

ABCTCL is one of India's largest coffee conglomerates, with sizeable exports to the US, Europe and Japan.