The US$150 million-plus organised coffee retail business in India, the world's biggest tea producer, is coming into its own, says Priyanka Bhardwaj in an in-depth article in Asia Times Online (www.atimes.com).

Coffee consumption has risen from 55,000 tonnes to 80,000 tonnes after decades of stagnation and industry sources say that the niche coffee retail format is growing at 10-12% a year. India has an estimated 500 cafe outlets in the organised sector, but KSA Technopak, the retail consultancy, sees the potential as being more than 2,000. Retail brands say it is between 3,000 and 5,000. Foreign players, not surprisingly, are eyeing the segment. The US$150-million Ravi Jaipuria Group has brought the Costa Coffee brand through a franchisee tie-up with Whitbread Plc, UK.

Gloria Jeans Coffees, one of the world's largest coffee chains, will open its first outlet in Delhi by July. The Geneva-based Global Franchise Architects, parent company of Pizza Corner and Coffee World, will open 15 more Coffee World outlets in India by March '07. Starbucks, the inspiration for the homegrown Barista chain, is reportedly in talks with the Raheja Group, but low pricing is one of the factors preventing its entry.

Among the Indian coffee chains, Barista plans to increase the number of outlets to 450 in the next year or so. Cafe Coffee Day plans to cross the 500-outlet mark and make its packaged filter coffee available in more than 50,000 retail outlets across the south.

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