Home BusinessBarista to invest Rs 40 crore
Barista Coffee Company is looking at registering its maiden net profit next financial year. Currently the company is registering operating profit with a turnover of Rs 150 crore.
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Sanjay Coutinho, chief operating officer of Barista, said, “We expect to grow our revenues by 25 per cent this year. We expect to register net profit next year.”
The company also intends to invest close to Rs 40 crore, raised through internal accruals, in setting up 100 new outlets every year. Currently, Barista has 230 outlets in India. Barista and Cafe Coffee Day (CCD) together controls 85 per cent of the Rs 400 crore organised coffee retailing market. While Barista holds close to 20-25 per cent of the market, the remaining is dominated by CCD.
“We shut down almost 15 stores nationally and renegotiated rentals for the existing stores. In some cases, rentals per store were reduced by 15-50 per cent. Till last year, around 24 per cent of our costs used to go into paying rentals. Now that has come down to 20 per cent,” informed Coutinho. Among other plans, the company intends to sell wine and beer at its outlets soon. “We have applied for licences in Delhi to begin with. It is a format we follow in Italy as well. We plan to start retailing wine and beer from this month itself and gradually make the format available in other states as well,” Coutinho added.