The Hindu Business Line : Barista coffee now at IOC's highway pumps

FOUR years after it began operations, the Barista Coffee Company is expected to make its maiden cash profit next fiscal. On the anvil is a nearly Rs 9-crore investment this year in expanding Barista's retail presence by another 45-50 outlets and setting shop in other overseas markets, besides Dubai and Sri Lanka.

The coffee retail chain is also revamping its menu by offering fruit juices, semi-assembled sandwiches and different kind of salads. The Chief Operating Officer, Mr Brotin Banerjee, said in the past, the company has had to close down several outlets that were not seen as profitable, "but this is the normal process for any retail chain, and we will continue to evaluate the business prospect of each outlet and close down those which are unviable."

On whether the change in ownership — from a joint venture company involving the Tatas, Barista is now a wholly owned company of Chennai-based Sterling Infotech Group — had resulted in any reorientation in terms of marketing and product mix, he said the chain will continue to introduce new products. However, he did not comment on whether pricing initiatives were also being considered.

Barista on Wednesday also announced a tie-up with Indian Oil Corporation Ltd to open outlets at IOC petrol pumps on highways. And to attract more customers to these highway outlets, the company has decided to lower prices by 10-15 per cent while reducing pack sizes, Mr Banerjee said.

"A large number of Barista consumers would benefit from this initiatives as they would be able to sip their favourite coffee while on the move. This new retail format would contribute 10-15 per cent of the topline within the next two years, by when we will have invested Rs 20 crore in setting up 200 such outlets."

Starting with the Delhi-Agra and the Delhi-Chandigarh highways, which will be fully operational by May, Barista is looking at adding 20 outlets by September.

The Executive Director of Retail Sales at IOC, Mr T.L. Jain, said, "As per industry estimates, the highway market in India is over Rs 60,000 crore and is growing at a rapid pace. IOC, with over 4,000 retail outlets on highways, offers the widest network to the highway customers. This tie-up with Barista is part of IOC's ongoing efforts to offer value-added services to customers visiting petrol pumps."

Mr Jain said IOC has forged similar alliances with grocery retail chain FoodWorld and Nirula's, besides a host of automobile service and spare part companies in an endeavour to offer more convenience to the customer.

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