It started with a single modern coffee outlet(or a cafe) in 1996 when Cafe Coffee Day launched what it says was India's first such outlet, on Brigade Road here.

Some 490 cafes later, including two each in Austria and Pakistan, India's largest chain recently got valued at Rs.2,400 crore.

Deutsche Bank AG and Templeton Darby International took a 10% stake in the retail division of Amalgamated Bean Coffee Trading Co.Ltd, the parent company of Coffee Day, for $95 million (Rs. 377.15 crore). However, since Amalgamated's retail division has debts, the enterprise value is around $600 million.

Coffee Day is now gearing up to expand in overseas markets and is planning to launch at least 50 outlets in Austria, Pakistan and eastern Europe in 2008.

"In India, a cup of coffee would cost you from Rs.30 to Rs.45. In Europe, it comes for CI.5-2 (Rs.88­117)", says Simran Sablok, general manager, marketing.

The company expects to invest Rs.1.2-1.3 crore in each overseas outlet. Setting up a cafe in India typically costs about Rs.55-75 lakh. The overseas outlets are expected to become profitable in four months, Sablok added.

Back in India, Coffee Day is slated to open its 500th cafe within two months and plans to have 1,000 cafes across India by 2009.

The expansion would be funded from the Rs.380 crore fund it raised recently by divesting the 10% stake. "We are not looking out to raise more money,"says Sablok.

Coffee consumption in India is expected to touch 90,000 tonnes this year, compared with 85,000 tonnes last year, according to a Coffee Board official. India's domestic branded and unbranded coffee market is worth Rs.700 crore and is expect to rise by 10% to 15% year-on-year for the next five years, says Coffee Day's Sablok.

Barista is the second biggest cafe chain in India with 175 outlets. The other players include Cafe Brio, Costa Coffee, Cafe World and Breads N' More.

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