Java green : Coffee with Reliance
[ Businessworld, 03 Dec, 2003 ]
 
Anuja Byotra

A Java Green outlet: the smell of profits

JAVA Green coffee parlours were initially envisaged as just an add-on service at Reliance Infocomm's WebWorld stores. But now Infocomm may get into the food and beverages business in a full-fledged way.

By the year-end Reliance hopes to have 31 Java Green outlets in Mumbai alone. And it is talking about an all-India outlet count of 1,200 by next year - a decidedly aggressive number considering that national leader Barista has only about 125 outlets. While the outlets in Mumbai will be attached to WebWorld shops, in other cities Reliance will be starting stand-alone cafes too - one is already up and running in Chennai's Spencer Plaza. Java Green outlets will also hit the highways at Reliance petrol pumps.

Reliance's healthy balance sheet could be a factor in branching out into this new line, say observers. "That Reliance has lots of cash at its disposal is evident from the speed with which it paid up for the unified licence. Naturally, it has been scouting for new investment opportunities," says an analyst with ICICI Securities. Also, investments per outlet are likely to be less (about Rs 12-20 lakh) since the construction is being done by Reliance Engineering Associates.

The company is gearing up for the expansion. Navi Mumbai is playing host to a 10-day training workshop of baristas (coffee bartenders) to meet the high workforce demand that the venture is bound to entail. Reliance will also test the supply chain before venturing into the public eye. "We are going for a soft launch. Advertising will begin in January once systems are in place," says a manager involved in the project. Evidently, Reliance has learnt its lesson from the launch of its telecom services.

http://www.businessworldindia.com/Dec1503/news13.asp

< Back | Next >