My Best Pick 2018

Jigar Shah

The CEO of Maybank Kim Eng Securities feels CCD’s focus on increasing revenue per outlet makes it a hot bet

Published 4 years ago on Jan 03, 2018 5 minutes Read
Soumik Kar

A lot can happen over coffee! The tagline aptly captures what’s happening at Café Coffee Day (CCD). The company’s subsidiary, Coffee Day Global (CDGL), is the leader with 46% share of India’s café market, thanks to its 1,700 stores spread across 240 cities. The cafe chain’s footprint is nearly three times that of the combined footprint of its next six competitors: Starbucks, McCafe, Coffee Bean & Tea Leaf, Costa Coffee, Dunkin Donuts and Barista. From Rs.6,700 crore in FY14, India’s organised café market is projected to grow at 15% CAGR by FY20. Of the organised café market, the café chain segment is growing at a much faster rate of 20% CAGR. This should, in turn, set the stage for CCD’s coffee revenues to grow at 15% every year for the next two years.