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In 1996, we opened the first Café Coffee Day outlet on Brigade

Road in Bangalore with a brand new vision – one of connecting
people over a beverage. Coffee and hangout spaces in India
would never again be the same.

As the parent company of the Coffee Day Group, we are

proud to have been the pioneers of café culture in this country.
Coffee processed by us is also exported to various parts of the
world spanning Europe, the Middle East and Japan, giving us
the enviable position of being among the top coffee exporters in
the country.

Today, our subsidiary Coffee Day Global Limited has

established the largest footprint of café outlets in India – spread
over 245 cities. Our forays into diverse businesses are marked
by the same passion with which we started Coffee Day Global
Limited. Our portfolio includes Technology Parks & SEZs,
Logistics, Investments, Financial Services and Hospitality.

VISION showing the world where coffee can take us. OUR
TAKE COFFEE. We are right where coffee is. From nurturing
each plant, to coaxing the perfect favor, blend and brew into
each cup we serve in our cafés, we are also where coffee is
going next.

The first CCD outlet was set up on July 11, 1996, at Brigade
Road, Bangalore, Karnataka. It was founded by V.G.

Vision statement: To be the only office for dialogue over a cup

of coffee.


Welcome to Café Coffee Day, a coffee shop where the young at

heart unwind. We're a division of Coffee Day Global Limited.
This coffee goes all over the world to clients across, Europe and
Japan, making us one of the top coffee exporters in the country.

Mission statement: To be the best Café chain by offering a

world class coffee experience at affordable price.

Services are unique and four major characteristics separate them

from goods, namely intangibility, variability, inseparability, and

Siddhartha started the café chain in 1996 when he

incorporated Coffee Day Global, which is the parent of
the Coffee Day chain. The first CCD outlet was set up on July
11, 1996, at Brigade Road, Bangalore, Karnataka. It rapidly
expanded to other cities in India, with more than 1000 cafés
open across the nation by 2011.

Café Coffee Day (CCD) is an Indian café chain. It is a

subsidiary of Coffee Day Enterprises Limited. Coffee Day
serves 1.8 billion cups of coffee annually in six countries.



Intangibility is an important consideration that complicates the
functional responsibility of a marketing manager, especially
while influencing and motivating the prospects/customers. The
goods of tangible nature can be displayed, the prospects or
buyers can have a view and they can even test and make a trial
before making the buying decisions. The selling processes are
thus found easier. We are aware of the fact that services are of
intangible nature and it is intangibility that complicates the task
of decision-makers.
Another point complicating the task of a professional is the
nature of perishability that we find in the services. The goods if
not sold today can be stored, preserved for further selling. Thus,
the risk element is here in a different form. But in the context of
services, if we fail to sell the services, it is lost only not for
today but even for the future. If a labour stops to work, if a seat
in the aircraft remains unsold, if a bedroom in a hotel remains
unbooked, a chair in a cinema hall remains vacant; we find the
business non-existent and the opportunities are lost and lost
forever. The services can’t be stored or preserved .

This is also a feature that complicates the task of professionals
while marketing the services. The inseparability focuses on the
fact that the services are not of separable nature. Generally, the
services are created and supplied simultaneously. Like the
dancers, musicians, dentists and other professionals create and
offer services at the same time. In other words, the services and
their providers are the same. Donald Cowell says, “Goods are
produced, sold and then consumed whereas the services are sold
and then produced and consumed.”
Another feature is heterogeneity which makes it difficult to
establish standard. The quality of services can’t be standardized.
The prices charged may be too high or too low. In the case of
entertainment and sports, we find the same thing. The same type
of services can’t be sold to all the customers even if they pay the
same price.

It is also ownership that makes it significant to market the
services in a bit different way. The goods sold are transferred
from one place to another, the ownership is also transferred and
this provides to the buyers an opportunity to resell. In the case
of services, we don’t find the same thing. The users have just an
access to the service. As for example, a consumer can use
personal care services or Medicare services or can use a hotel
room or swimming pool, however the ownership rests with the

Services can’t be delivered to customers or users. Services don’t
move through the channel of distribution. For availing the
services, it is essential that the users are brought to the providers
or the providers go to the users. It is right to say that the services
have limited geographical areas.


The quality of service requires another tool for measurement.

We can’t measure it in terms of service level. It is very difficult
to rate or quantify the total purchase. As for example, we can
quantify the food served in a hotel but the way a waiter or a
carrier serves it or overall environment or behavior of other staff
can’t be ignored while rating the total process. Hence, we can
determine the level of satisfaction at which the users are found
satisfied. A firm sells atmosphere, conveniences, consistent
quality, status, anxiety, moral, etc.

Nature of Demand:

While going through the features of services, we can’t

underestimate the factor related to the nature of demand.
Generally, the services are found of fluctuating nature.
Particularly during the peak season, we find an abnormal
increase in the demand. As for example, the mobility of
passenger is found increased, especially during the marriage
season or during an important festival.
The level of tangibility in the service offer is based on
three criteria:

i. Tangible goods which are included in the service offer and

consumed by the user.
ii. The physical environment in which the service
production/consumption process takes place, and
iii. Tangible evidence of service performance.

Café Coffee Day Global Limited Company is

a Chikkamagaluru-based business which grows coffee in its own
estates of 20,000 acres. It is the largest producer
of Arabica beans in Asia, exporting to various countries
including the U.S., Europe, and Japan.

In 2010, it was announced that a consortium led by Kohlberg

Kravis Roberts would invest 10 billion (US$140 million) in
Coffee Day Resorts, owned by the company. The same year, the
logo was changed to the current logo, which the company stated
was to showcase the chain as a place to talk. This was done with
major changes in the layout of the stores, including the addition
of lounges and a total revamp of the interiors.

The company is vertically integrated as per the strategy to cut

costs: from owning the plantations to growing the coffee,
making the coffee machines and making the furniture for the


On 29 July 2019, Siddhartha went missing, and his body was
found in the Nethravathi river backwaters two days later. A
letter, assumed to be written by Siddhartha addressing the board
of directors and staff, was made public in which he takes
responsibility for not creating a profitable business model.
In September 2019, the company appointed auditing firm Ernst
and Young to scrutinize their books of accounts. They also
indicated the auditor will also look into circumstances of the last
letter written by the founder and the points he made in it.


Establish itself as eminent chain of cafes in India. ... As
Cafe Coffee Day is youth oriented brand so its objective would
be attracting and engaging youth in its brand. Thus its strategy
involves alluring youngsters and what better way than
interacting with them.

Keeping in mind the vision and mission of the corporation, the

business has actually laid down its goals and goals. These goals
and goals are noted below.

One objective of the company is to reach no landfill status. It is

working toward no waste, where no waste of the factory is land
filled. It encourages its staff members to take the most out of the
by-products. (Business, about us, 2017).
 Another goal of Cafe Coffee Day is to squander minimum food
during production. Most often, the food produced is lost even
before it reaches the consumers.
 Another thing that Business is dealing with is to improve its
product packaging in such a way that it would help it to reduce
the above-mentioned complications and would likewise
guarantee the shipment of high quality of its items to its
 Meet global standards of the environment.
 Build a relationship based on trust with its consumers,
organization partners, workers, and federal government.

Having done with the initial foundation, the major challenge

faced by the cafe coffee chain was to make a revolutionary
change in the Indian culture where the majority of the
population prefer drinking tea rather than coffee.
After the initial struggle, the homegrown cafe chain came a long
way, credited with the start of coffee shop culture in India but
then it finds itself facing tough competition not just from the
international chains such as Costa Coffee, Starbucks or Barista
but also from various domestic players and concept cafés.


To stand up against the competition, CCD has built its retail

strategy and named it 3As strategy:

what worked best for the Indian cafe coffee chain was its
combination of aspiration and affordability.

Even as it gave coffee an attractive makeover, CCD’s prices

stayed well below its rivals.
Ensuring that it remained the favorite hangout choice for school
and college students or young adults on meager paychecks from
their first jobs.

It wasn’t just restricted to the metro cities. If there’s one singular
claim that Coffee Day can makeover all of its rivals, it is that it
took coffee to cities and towns across the country, and offered
the same experience everywhere.

They always believe in serving an experience along with the

They have ensured that the cafes are at an arm’s reach.

Today, coffee is not just seen as a beverage but a social glue that
brings people together to relax and unwind.

“Let’s catch up at CCD,” is probably one line most Indians have

said or heard at one point or the other over the last two decades.

There is extreme competition in the market of food and drinks.

Cafe Coffee Day is among the top business in this competitive
industry with a number of strong rivals like Unilever, Kraft
foods and Group DANONE. Cafe Coffee Day is running well in
this race for last 150 years. Each company has a certain share of
market. This rivalry is not just restricted to the price of the
product but also for quality, innovation and variation. Every
market is making every effort hard for the maintenance of their
market share. The competitors of other business with Cafe
Coffee Day are quite high.

A number of barriers are there for the new entrants to occur in

the consumer food market. Just a couple of entrants prosper in
this industry as there is a requirement to understand the
customer requirement which needs time while recent
competitors are aware and has progressed with the customer
loyalty over their products with time. There is low risk of new
entrants to Cafe Coffee Day as it has quite large network of
distribution globally controlling with well-reputed image.


In the food and beverage industry, Cafe Coffee Day owes the
largest share of market requiring greater number of supply
chains. In action, Cafe Coffee Day has also been concerned for
its suppliers as it thinks in long-term relations.


There is high bargaining power of the purchasers due to
excellent competitors. Changing cost is rather low for the
customers as many business sale a number of similar products.
This seems to be an excellent threat for any business. Therefore,
Cafe Coffee Day ensures to keep its customers satisfied. This
has led Cafe Coffee Day to be among the devoted company in
eyes of its purchasers.
There has been a terrific hazard of alternatives as there are
alternatives of some of the Nestlé's items such as boiled water
and pasteurized milk. There has likewise been a claim that a few
of its products are not safe to utilize resulting in the reduced
sale. Thus, Cafe Coffee Day started highlighting the health
advantages of its products to cope up with the substitutes.

Cafe Coffee Days covers much of the popular consumer brands
like Kit Kat and Nescafe and so on. About 29 brand names
amongst all of its brand names, each brand name earned revenue
of about $1billion in 2010. Its major part of sale remains in The
United States and Canada constituting about 42% of its all sales.
In Europe and U.S. the leading major brand names offered by
Cafe Coffee Day in these states have a terrific trustworthy share
of market. Similarly Cafe Coffee Day, Unilever and DANONE
are two large markets of food and beverages along with its
primary rivals. In the year 2010, Cafe Coffee Day had actually
made its yearly earnings by 26% boost due to the fact that of its
increased food and beverages sale particularly in cooking stuff,
ice-cream, and drinks based on tea, and frozen food. On the
other hand, DANONE, due to the increasing costs of shares
resulting a boost of 38% in its profits. Cafe Coffee Day lowered
its sales cost by the adaptation of a new accounting procedure.
Unilever has number of employees about 230,000 and functions
in more than 160 nations and its London headquarter also. It has
actually ended up being the second biggest food and beverage
market in the West Europe with a market share of about 8.6%
with only a difference of 0.3 points with Cafe Coffee Day.
Unilever shares a market share of about 7.7 with Cafe Coffee
Day ending up being first and ranking DANONE as third. Cafe
Coffee Day draws in local clients by its low expense of the
product with the regional taste of the products keeping its first
place in the worldwide market. Cafe Coffee Day business has
about 280,000 workers and functions in more than 197 nations
edging its competitors in numerous areas. Cafe Coffee Day has
actually likewise decreased its expense of supply by introducing
E-marketing in contrast to its competitors.



We are engaged in our coffee business through our subsidiary,

Coffee Day Global Limited (earlier known as Amalgamated
Bean Coffee Trading Company Limited) (“CDGL”) and its
subsidiaries. In addition to having the largest chain of cafés in
India, we operate a highly optimized and vertically integrated
coffee business which ranges from procuring, processing and
roasting of coffee beans, to retailing of coffee products.

Founded in 1955 and with revenues in excess of Rs 1350 crore,

SICAL Logistics Ltd is India's leading integrated logistics
solutions provider with over 6 decades of experience in
providing end-to-end solutions in logistics? Coffee Day Group
acquired SICAL in 2011.

Traditionally known for its stevedoring, customs handling,

trucking and steamer agency businesses, SICAL today is poised
for growth, having invested significantly in logistics-related
infrastructure. It has also expanded into various business areas
such as mining, retail supply chain solutions, port logistics, road
& rail transport, container freight station, warehousing and


Way 2 Wealth is an Investments Consultancy Firm providing

complete wealth management and investing solutions. Offering
a range of products and services spanning equities, derivates and
mutual funds among others, Way2Wealth aims to help
customers make well-considered investment decisions. We
service our customer relationships through a team of over 1,000
wealth managers spread across 570 easily accessible Investment
Outlets in almost all major towns and cities in India.

Founded in 1995 as the developer of technology parks and SEZs
for the Coffee Day Company, Tanglin Developments offers
bespoke infrastructural facilities for Technology enterprises.
TDL has two technology parks, 'Global Village' and 'Tech Bay',
situated in Bangalore and Mangalore respectively.


We own and operate three luxury boutique resorts (one directly

through our Company, and two through our wholly-owned
subsidiary, Coffee Day Hotels & Resorts Private Limited
(“CDHRPL”), under the brand 'The Serai'. Our resorts are
located in the State of Karnataka at Chikmagalur, Bandipur and
Kabini. Additionally, we also hold a minority interest in and
manage a luxury resort located in the Andaman and Nicobar

The coffee market in India has been growing due to the demand
for Ready to drink coffee and has become a part of an
individual’s daily consumption basket. Due to changing
cultures, consumers are becoming aware of domestic and
foreign brands, which are boosting the consumption levels. The
export promotion schemes and other subsidies by the GOI, and
increasing trend of eating out coupled with the rising share of
young population has driven the market. Well-established coffee
shop chains, such as Cafe Coffee Day (CCD) and Barista,
enhanced their pan-India presence in the latter part of the review
period. In 2010, Cafe Coffee Day and Barista had 970 and 200
stores, respectively, and they aim to continue expanding in the
next few years. Meanwhile, several relatively new players, such
as Costa Coffee, Coffee Bean, Gloria Jean’s and Java Coffee,
are trying to establish a Electronic copy available at: footing in Indian coffee
retailing. Both these factors drove on-trade consumption of fresh
coffee beans in 2010, with volumes growing by 12%. On-trade
sales have emerged as the primary sales channel for fresh coffee
beans, in the absence of any appreciable off-trade consumption.
In 2010, the average bill amount at coffee outlet was between
rupees 135 and 150. This is expected to rise to rupees 245 by
2016. With customers paying significant amount for their
coffees, they are also expecting a lot from an outlet. Factors
such as menu, ambience, service and brand name are playing an
important role while choosing a coffee outlet. Indian Coffee
Chains market is quite mature which is evident from the fact
that Café Coffee Day alone maintains more than 1000 Café’s in
141 cities in India. This forms the main focus of this project.


Right, this is where we tell you stuff that you probably already
know, but just in case. Caffeine was put through some really
rigorous tests by the up-all-night researchers at MIT and they
found that it was a 'mind-accelerating mood-booster'. We're sure
you could do with some of that. That's not all, caffeine improves
mental performance, improves reaction time and attention span.
Now there's your explanation for all the great ideas you've had
while at a CCD, right? Coffee also reduces the risk associated
with certain cancers, cirrhosis of the liver and other scary stuff
that we're too grossed out to write here. But it's true! Drink
coffee, stay happy, stay healthy!


So if you've ever wondered how coffee gives your brain that

edge, this is your lucky day! Coffee's secrets revealed.
Adenosine gets together with its receptors inside your noodle
and that's when you feel drowsy. When caffeine (coffee's
celebrated active ingredient) shows up, it attaches itself to your
receptors. When the pituitary gland gets a whiff of this, it comes
to the (probably erroneous) conclusion that there's an emergency
and gets the glands to let loose a load of adrenalin. This and the
boosted dopamine level give you what you know as the caffeine
high. Neat, right? Now, more coffee.
Alphorns Mango Milkshake

Arise With Pomegranate

Assam Tea
Aztec single origin Coffee

Café Americano

Café Frappe
Café Latte

Café Mocha

Classic Cappuccino
Classic Lemonade

Classic Strawberry Milkshake

Cocoa Cookie Milkshake

Cold Cocoa Latte

Cool Blue

Crunchy Frappe
Darjeeling Tea

Dark Frappe

Devil's Own
Enliven With Chamomile

Ethiopian single origin Coffee

Eye-opener Espresso
Filter Coffee

Glide With Green Mint

Green Tea
Hot Gourmet Cocoa

Intensify With Sea Buckthorn

Inverted Cappuccino
Kaapi Nirvana

Kesari Delight Milkshake

Khus Coconut Refresher


Masala Chai

Rasmalai Smoothie
Reverse With Oxbloxx

Revive With Butterfly Pea Flower

Simmer With Bluebellvine

Sugarcane Refresher

Tropical Iceberg

Vanilla Cappuccino
Vanilla Latte

Vegan Shake
 Direct Competitors:
• Barista
• Cafe Mocha
• Costa Coffee
• Beyond Coffee
• Gloria Jeans
• Minerva Coffee Shop

 Indirect Competitors:
• McDonald
• Haldirams

 Global Competitors:
• Star Bucks

Mr. V. G. Siddhartha
Chairman and Managing Director
Mr. S.V. Ranganath
Independent Director
Mr. M. D. Mallya
Independent Director
Dr. Albert Hieronimus
Independent Director
Mr. Sanjay Omprakash Nayar
Non-Executive, Nominee Director
Mrs. Malavika Hegde
Non-Executive, Non-Independent Director
What started as a vision to pioneer café culture in a fast-
changing India post economic liberalization, soon snowballed
into us becoming the largest café chain in the country? Today,
we have established the largest footprint of café outlets in India
– spread across over 200 cities. Since our first year as a public
listed company in 2015, we have continued to strengthen brand
loyalty by focusing on customer delight, product innovation and
value for both customer as well as shareholders.


We continue to strategically locate our café outlets at multiple
consumption points such as high streets, malls, petrol stations,
highways and other high traffic areas such as transportation
hubs, airports, hospitals, offices, educational institutions and
tourist attractions – all with a focus on reaching a wider
customer base.

We believe that our strategic and wide coverage across the

country places us in a unique position to capitalize on and gain
insights into current trends and consumer preferences. This
helps us tap into the potential of diverse businesses like
technology, finance, hospitality and logistics. Further, with the
direction of our visionary promoter V.G. Siddhartha and his
experienced management team, our non-coffee businesses
continue to contribute effectively towards the overall health of
the Company.


1,722 Cafés
47,747 Vending Machines
532 Xpress kiosks
403 Fresh & Ground outlets


Led by our flagship brand Café Coffee Day, we follow a multi-

format retail strategy that captures the entire coffee consumption
basket with various specialized divisions.

Targeted at the discerning though value-conscious youth, we

have grown to over 1,700 cafes, located in 245 cities all over
India. From signature coffees like the Iced Eskimo and the
Devil’s Own to delicious sandwiches, burgers and sundaes, we
have a vast portfolio that appeals to diverse palates.
Aimed at the well-travelled coffee aficionado, this premium café
offers exclusive single-origin coffees from around the world that
are crafted by our master brewers who have curate the best of
blends from Latin America, Africa and India. It also offers a
variety of food that perfectly complements the range of coffee.


Launched in 2003, this is our on-the-go food and beverage
kiosk. Over the years, we have grown to 532 kiosks across 24
cities in India. We are also focused on selectively expanding the
CCD Value Xpress kiosks across high-demand locations like
corporate, institutions and hospitals.


This division serves fresh beans and powder to customers from
over 400 F&G outlets across 7 states in India. We have also
introduced a specialized coffee machine called ‘Kaapiguru’ for
our F&G business, which is used by a large number of
restaurants and eateries.


This is the largest vending machine chain for fresh milk and
roasted coffee beans with over 47,500 machines in India
currently. We have entered into a joint venture agreement with
WMF, and will be leveraging this in the months to come.


Coffee Day is one of India’s leading coffee exporters with
clients across Europe, the Middle East, South East Asia and
North America. We have entered long and short-term contracts
to export coffee beans at prevailing market rates set on
international coffee exchanges.

Our first international café opened in Vienna in the year 2005.
Today, we have 18 outlets in places like Austria, the Czech
Republic, Egypt, Malaysia and Nepal, helping us take the fne
taste of Indian coffee to the world.

Our wholly-owned subsidiary, Tanglin Developments Limited,
is engaged in the business of developing technology parks in
Bangalore and Mangalore. This year Tanglin has moved to the
occupancy of 3.46 million sqft from 3.20 million sqft at the
same time last year.
Our subsidiary SICAL Logistics Ltd was founded in the year
1955. It is India’s leading provider of integrated logistics
solutions with over 6 decades of experience. With deep
knowhow in handling bulk commodities over the decades,
SICAL has entered the mining space and currently offers mining
and cargo handling solutions. It has also entered the Retail
Supply Chain space by offering warehousing facilities along
with last mile distribution and cold chain services.


FINANCIAL SERVICES Our investment advisory company,
Way2Wealth, offers a wide range of financial products, advice
and services under one roof, with a pan-India branch network.
We currently cater to an array of retail, institutional and
corporate clients.
Dear Members, Your Directors have pleasure in presenting their
10th Annual Report on business and operations along with the
Audited financial statements and the Auditor’s report of the
Company for the financial year ended 31 March, 2018.
During the fiscal year ended 31 March 2018, consolidated gross
revenue grew by 22% driven by strong impetus from Coffee,
Financial Services & Multimodal Logistics. The retail gross
revenue in coffee business contributed a growth of 12%.
Consolidated Profit after tax and exceptional is Rs 1063 Million
(Includes Rs 388 Million on account of sale of Global Edge
Software Limited) for the year 2018 compared to Profit of Rs
470 Million for the previous year.
A detailed performance analysis is provided in the Management
Discussion and Analysis segment which is annexed to this


The state of the Company affairs forms an integral part of
Management Discussion & Analysis Report.

The Board of Directors of the Company does not recommend
any dividend for the financial year 2017-18.


As stated in Regulation 34(2) (e) of the Listing Regulations, the
Annual report shall contain a detailed report on Management
Discussion & Analysis, which is hereto attached with the
Annual report in “Annexure-1.
The report on Corporate Governance along with a Certificate
from the Practicing Company Secretary regarding proper
compliance of Corporate Governance pursuant to the
requirements of Schedule V of the Listing Regulations forms an
integral part of the Annual Report stated in “Annexure-2.”


The Company has four main Committees of the Board i.e.:
(a). Audit Committee

(b). Nomination and Remuneration Committee

(c). Stakeholder’s Relationship Committee and

(d). Corporate Social Responsibility Committee.

The detailed information on each of these committees including

its composition, functioning and number of meetings is
disclosed in the Corporate Governance report annexed with the
Annual Report of the Company.

The Board has constituted an Audit Committee comprising of
Mr. S.V. Ranganath as Chairman, Dr. Albert Hieronimus and
Mr. V.G. Siddhartha as its Members. There have been no
instances during the year where recommendations of the Audit
Committee were not accepted by the Board. The details of the
composition of the Board and its Committees and number of
meetings held and attendance of Directors at such meetings are
provided in the Corporate Governance Report, which forms part
of the Annual Report.


There has been no change in the nature of business of the
The information on conservation on energy, technology
absorption and foreign exchange earnings and outgo stipulated
under Section 134(3)(m) of the Act read with Rule 8 of the
Companies (Accounts) Rules, 2014 is provided in “Annexure-4”
to this Annual report.



a) National Company Law Tribunal (NCLT) Pursuant to the

Scheme of Amalgamation filed under Section 230 to 232 of the
Act, the National Company Law Tribunal has passed the final
order dated 31st August 2017 and the Company has allotted
52,50,000 Equity shares to the Shareholders of Coffee Day
Overseas Private Limited.
b) Regional Director, Hyderabad w.r.t. its Material Subsidiary,
Coffee Day Global Limited: In line with the provisions of
Section 233 of the Act and Rule 25(5) of the Companies
(Compromises, Arrangements and Amalgamations) Rules,
2016, the Regional Director (RD) of Hyderabad had issued the
order dated 30th January 2018, and approved the merger of
Coffee Day Global Limited (‘Material Subsidiary’) and its
subsidiary Companies, namely Amalgamated Holdings
Limited, Coffee Day Properties (India) Private Limited and
Ganga Coffee Curing Works Limited.


An extract of the Annual return has been annexed to the Board’s
Report in compliance with Section 92 of the Companies Act.

As stated in provisions of Section 197(12) of the Act read with
Rule 5(2) and 5(3) of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014, as
amended from time to time, a statement showing the names and
other particulars of the employees drawing remuneration in
excess of the limits set out in the said rules which includes the
name of top 10 employees in terms of remuneration, forms part
of this annual report. Pursuant to the provisions of Section
136(1) of the Act, the Board report is being sent to the
shareholders including the said statement.
Disclosure pertaining to the remuneration as required under
Section 197(12) of the Act read with Rule 5(1) of the
Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014 is provided in “Annexure-8”.


Pursuant to the provisions of Section 135 of the Act read with
the Companies (Corporate Social Responsibility Policy) Rules,
2014, and on the recommendations of the CSR Committee
comprising of Mr. S.V. Ranganath as the Chairman and Mr.
V.G. Siddhartha and Mrs. Malavika Hegde as Members, the
CSR policy is adopted and approved by the Board of the
Company. The said policy has been hosted on the Company’s
website and is available on the link: It lays
down the purpose of formulation of the policy, areas of focus,
composition of the Committee, responsibilities of the Board of
Directors, and CSR budget. It also contains the CSR activities
which can be carried out by the Company, governance structure
and through implementation process.

In commitment to keeping in line with the Green Initiative and
going beyond to it, an electronic copy of the Notice of the 10th
Annual General Meeting of the Company is sent to all Members
whose email addresses are registered with the
Company/Depository Participant(s). For members who have not
registered their e-mail addresses, physical copies are sent
through the permitted mode.


The Company has zero tolerance for sexual harassment at the
workplace and has adopted a Policy on Prevention, Prohibition
and Redressal of Sexual Harassment at the workplace in line
with the provisions of the Sexual Harassment of Women at
Workplace (Prevention, Prohibition and Redressal) Act, 2013
and the rules made there under. The Policy aims to promote a
healthy work environment and to provide protection to
employees at the workplace and redress complaints of sexual
harassment and related matters thereto. The Company has also
constituted an Internal Complaints Committee, known as the
Prevention of Sexual Harassment (POSH) Committee, to
enquire into complaints of sexual harassment and recommend
appropriate action.
During the financial year 2017-18, the Company has not
received any complaints on sexual harassment.


The Company is exposed to various risks considering the
diversified parameters according to the different business
sectors of the Company such as coffee business, technology
park business, logistics business, financial services business and
resort business. The Audit Committee oversights the area of
financial risks and controls. Major risks identified by the
business and functions are systematically addressed through
mitigating actions on a continuing basis. The Company has
incorporated sustainability in the process, which helps the Board
to align potential exposures with the risk appetite and highlight
risks associated with chosen strategies.


The global upswing in economic activity is strengthening, with
global growth projected to be 3.7 percent in 2018. Broad-based
upward revisions in the Euro area, Japan, emerging Asia,
emerging Europe, and Russia more than offset downward
revisions for the United States and the United Kingdom. But the
recovery is not complete; while the baseline outlook is
strengthening, growth remains weak in many countries, and
inflation is below target in most advanced economies.
Commodity exporters, especially of fuel, are particularly hard
hit as their adjustment to a sharp step-down in foreign earnings
continues. And while short-term risks are broadly balanced,
medium-term risks are still tilted to the downside. For
policymakers, the welcome cyclical pickup in global activity
provides an ideal window of opportunity to tackle key
challenges—namely to boost potential output while ensuring its
benefits are broadly shared, and to build resilience against
downside risks.


India has emerged as the fastest growing major economy in the
world as per the Central Statistics Organization (CSO) and
International Monetary Fund (IMF) and it is expected to be one
of the top three economic powers of the world over the next 10-
15 years, backed by its strong democracy and partnerships.
India’s GDP is estimated to have increased 6.6 per cent in 2017-
18 and is expected to grow 7.3 per cent in 2018-19.
Economic growth is projected to strengthen to above 7%. In the
long run, the GST will boost corporate investment, productivity
and growth by creating a single market and reducing the cost of
capital equipment. Investment will be further supported by the
plan to recapitalize public banks and by the new road plan.
Recent measures to digitize the economy and improve tax
compliance should boost tax revenue in the medium term. They
are accompanied by an increase in public pensions and wages,
as well as debt write-offs in some states, resulting in a broadly
neutral fiscal stance over the projection period. Given the high
public debt-to-GDP ratio, increasing social infrastructure such
as health and education, will require raising more property and
income tax revenue. With inflation expectations adjusting down,
there could be room for further cuts in interest rates if inflation
durably remains below 4%.
Non-performing loans have increased, largely reflecting
recognition efforts, and are particularly high in public banks.
Steps have been taken to clean up banks' balance sheets, giving
creditors more control over the stressed entities. A new
bankruptcy law is also being implemented. The large
recapitalization plan for public banks should be accompanied by
governance reform. External debt remains low and foreign
exchange reserves have increased, reducing vulnerabilities.


Profit and Loss Account Analysis
Gross revenues
Gross revenues increased by 22% to Rs.43, 305 million in 2017-
18, compared with Rs.35, 519 million reported in 2016-17.

Operating profit:
Operating profit (EBITDA) increased by 21% to Rs.8,253
million during 2017-18 from Rs.6,812 million in 2016-17,
including an exceptional gain of Rs. 532 Million on account of
sale of equity stake in Global Edge Software Limited largely
because of better financial performance of café business and
integrated multimodal logistics business.
Depreciation for the year under review stood at Rs.2, 604
million, compared with Rs. 2,268 million recorded in the
previous year, up 15% on a y-o-y basis.
Finance costs:

Finance cost for the year under review increased by 10% from
Rs. 3,172 million to Rs. 3,491 million because of increase in the
gross debt.

Net profit
Consolidated net profit attractable to the owners for the year
under review stood at Rs. 1063 Million over Rs. 470 Million in
the previous financial year which includes exceptional gain of
Rs. 388 Million on account of sale of equity stake in Global
Edge Software Limited.
Balance Sheet Analysis

Net worth
The Company’s net worth stood at Rs. 30,155 million as on 31st
March, 2018, increasing by 6%, compared with Rs. 28,483
million as on 31st March, 2017. The net worth comprised paid-
up equity share capital amounting to Rs. 2,113 million as on
March 31, 2018 (211,251,719 equity shares of Rs. 10 each fully
paid up) and Non-controlling interests of Rs. 6,379 million. The
Company’s other equity stood at Rs. 21,663 million as at 31st
March 2018.

Loan profile
The total loan funds stood at Rs. 50,499 million while long-term
borrowings stood at Rs. 42,390 million. The Company’s net
debt as on 31st March, 2018 stood at Rs. 33,238 million.

Non-current liabilities (excluding borrowings) stood at Rs.
2,106 million, comprising of other financial liabilities Rs. 1,327
million, deferred tax liabilities Rs. 361 million, other non-
current liabilities Rs. 254 million and provisions amounting to
Rs. 164 million.
Current liabilities (excluding borrowings of Rs. 8,109 million
and current maturities of long-term borrowings amounting to
Rs. 10,464 million) stood at Rs. 6,000 million, comprising of
other financial liabilities (excluding current maturities of long-
term borrowings) of Rs. 3,343 million, trade payables of Rs.
1,325 million, other current liabilities Rs. 885 million, current
tax liabilities Rs. 411 million and provisions amounting to Rs.
36 million.

Total assets
The Company’s total assets increased to Rs. 88,759 million in
2017-18 from Rs. 80,252 million in 2016-17, representing an
increase of 11%. Capital work-in-progress (WIP) and
investment property under development for the year increased
by 11% to Rs.12,623 million in 2017-18, compared with Rs.
11,363 million in 2016-17 on account of ongoing construction in
our subsidiary engaged in the business of leasing of commercial
office space and further additions by integrated multimodal
logistics business.

The Company’s investments (current and non-current) including
equity accounted investees during the year under review
increased to Rs. 7,161 million from Rs. 6,641 million in the
previous year, an increase of 8% over the previous year.
Current and Non-current assets

Inventories decreased by 28% to Rs.956 million during the year

under review from Rs.1, 325 million. Inventories comprise of
raw material inventory of Rs.631 million, stores and spares
worth Rs. 136 million, finished goods inventory of Rs. 139
million and WIP inventory of Rs. 49 million.

Trade receivables of the Company stood at Rs. 4,798 million in

FY18, an increase of 17% over the previous year.
The Company had on its books cash and bank balances
including deposits worth Rs. 17,261 million as on 31st March,
2018 as compared to Rs. 14,766 million in 31st March, 2017.

Loans and other assets amounted to Rs. 12,750 million,

comprising 14% of the Company’s total assets. Current loans
and other assets for the year stood at Rs. 3,699 million (decrease
of 2% from the last year).

Tax assets increased by 6% to Rs. 1,245 million during the year

under review from Rs. 1,174 million, comprising of deferred tax
assets, (net) Rs. 776 million and current tax assets, (net) Rs. 469

Other financial assets stood at Rs. 1,463 million as compared to

Rs. 1,250 million in the previous year.

Operational overview

Coffee Day Enterprises is present across the following sectors:

Coffee, logistics, financial services, leasing, commercial space
and hospitality. However, 50% of the consolidated Gross
revenue of the Company was contributed by the coffee business
during the year under review, followed by 31% from the
logistics business and 13% from financial services.


Gross Revenue from the Company’s consolidated coffee

business stood at Rs.21, 607 million in 2017-18, contributing
50% to the consolidated top line, representing an increase of
18% over 2016-17. The substantial increase in revenues can be
attributed to setting up of new café outlets and deployment of
new vending machine. Revenue from the retail division
increased by 12 % from Rs.14, 234 million in 2016-17 to Rs.15,
907 million over 2017-18. Consolidated net profit of coffee day
global ltd increased by 40 % from Rs.264 million in 2016-17 to
Rs.370 million in 2017-18.

Coffee Day Global Limited’s flagship café chain brand Café

Coffee Day (CCD) owns 1722 cafes in 245 cities and 532 CCD
Value Express kiosks. The coffee beans and powder are
marketed through 403 Fresh and Ground Coffee retail stores.
There are 47,747 vending machines that dispense coffee in
corporate workplaces and hotels under the brand. The division
serves more than 2 billion cups of coffee per annum.
Internationally, CCDs are present in Vienna, Czech Republic,
Malaysia Nepal and Egypt.

Retail Gross Revenue at Million; up 12% - Rs 15907
YoY Retail EBIDTA at million; up 14%- Rs 2906

Net Profit after Tax at million: up 40% - Rs 370

According to TechSci Research report, “India Coffee
Shops/Cafés Market Forecast, Consumer Survey and
Opportunities, 2021”, coffee shops / cafés market in India is
projected to grow at a CAGR of over 11% during 2017-2021, on
account of the growing coffee culture among young population,
increasing urbanization, rising disposable income levels and
changing eating and drinking preferences of consumers.
Changing work patterns of business executives is also driving
the demand for such coffee shops/cafés, as these outlets offer
services such as free Wi-Fi, entertainment zones, etc.
“In India, coffee shops/cafés market is in the developing stage,
with the majority of demand for coffee beverages emanating
from urban centers such as New Delhi, Mumbai, Bangalore,
Chennai, Hyderabad and Kolkata. In addition to metros and Tier
I cities, new companies and leading market players are targeting
expansion to Tier II and Tier III cities. This, coupled with the
implementation of various government plans to develop smart
cities, etc., is projected to drive growth in the Indian market for
coffee shops/cafés over the next five years.”, said Mr. Karan
Chechi, Research Director with TechSci Research, a research
based global management consulting firm.

“India Coffee Shops / Cafés Market Forecast, Consumer Survey

and Opportunities, 2021” has evaluated the future growth
potential of Indian coffee shops / cafes market and provides
statistics and information on market size, structure and
consumer behavior trends. The report intends to provide cutting-
edge market intelligence and help decision makers to take sound
investment evaluation. Besides, the report also identifies and
analyses emerging trends along with essential drivers,
challenges and opportunities available in Indian coffee
shops/cafés market.

With the growing influence from coffee chains like Café Coffee
Day, Starbucks, Costa Coffee etc., coffee consumption is
increasing in India. This trend is gaining momentum in the
northern and western part of the country, where traditionally the
consumers were tea drinkers. In addition, the increase in coffee
dispensed by vending machines has helped to drive the out-of-
house consumptions especially in offices and on-the-go.

The concept of vending machines in India gained momentum in

2002 when Tata first established vending machines for tea in the
country, and since then, vending machines of hot beverages
have gained substantial presence in the country. With the
increase in the working population, industries, offices and the
growth of service-based offices like Business Process
Outsourcing companies, the consumption of hot beverages via
vending machines has become popular in India. Source:

Today, these vending machines can be seen from shops to large

corporate offices, from railway stations to Government offices.
Coffee vending machines which can be noticed at nearby
bakeries and railway stations, cinema halls, food centers,
hospitals and offices. Its vending machines came in different
sizes and styles to match the needs of consumers at different

The Company owns and operates luxury boutique resorts, one
directly through our Company, and two through our wholly-
owned subsidiary, Coffee Day Hotels & Resorts Private Limited
(CDHRPL), under the brand ‘The Serai’. These resorts are
located at Chikmagalur, Bandipur and Kabini, all in Karnataka.
The Company also with management control holds a minority
interest in a luxury resort in the Andaman and Nicobar islands.
Revenue from our hospitality business increased by 5.6% from
Rs. 355 million in 2016-17 to Rs. 375 million in 2017-18.

The Indian tourism and hospitality industry has emerged as one
of the key drivers of growth among the services sector in India.
Tourism in India has significant potential considering our rich
cultural and historical heritage, variety in ecology, terrains and
places of natural beauty spread across the country. Tourism is
also a potentially large employment generator besides being a
significant source of foreign exchange for the country. India's
Foreign Exchange Earnings (FEEs) increased by 17.6 % year-
on-year in January 2018 over January 2017. Source: IBEF
India is the most digitally-advanced traveller nation in terms of
digital tools being used for planning, booking and experiencing
a journey. India’s rising middle class and increasing disposable
incomes have continued to support the growth of domestic and
outbound tourism. Foreign Tourist Arrivals (FTAs) in India
increased 8.4 per cent year-on-year to 1.06 million and the
number of FTAs on e-tourist visa increased 58.5 per cent to 2.40
lakh foreign tourist as per Ministry of Tourism, Government of
India. India is expected to move up five spots, to be ranked
among the top five business travel markets globally by 2030, as
business travel spending in the country is expected to treble by
2030 from US$ 30 billion in 2015. Source. International hotel
chains will likely increase their expansion and investment plans
in India, and are expected to account for 50% share in the Indian
hospitality industry by 2022, from the current 44%.

The Indian government has realized the country’s potential in
the tourism industry and has taken several steps to make India a
global tourism hub. Some of the major initiatives planned by the
Government of India to give a boost to the tourism and
hospitality sector are as follows: The Government of India
signed a loan agreement for US$ 40 million with the World
Bank for the Uttar Pradesh Pro-Poor Tourism Development
Project aimed at developing tourism facilities in the state. Under
Budget 2018-19, the government allotted Rs 1,250 crore
(US$193.08 million) for Integrated development of tourist
circuits under Swadesh Darshan and Pilgrimage Rejuvenation
and Spiritual Augmentation Drive (PRASAD).


Financial Risk:
If the Company's cash flow proves inadequate to meet its
financial obligations, its status as a going concern might be

Competition Risk:

With growing westernization and increase in the penetration of

global players and growing popularity of individual themed
cafés, it might be a challenge for the Company to maintain its
existing consumer base.

Regulatory Risks:

Operating in the food industry space is subject to various

regulatory risks with respect to failure of compliance to quality
standards and various regulations imposed by the government
policies. Failure to meet with the standards might result in legal
implications and loss of business.
Climatic Risks:
Bad monsoon might result in lower production of coffee leading
to soaring high coffee prices. Passing it to the customers would
incur menu costs and loss in price sensitive segment of
consumer base. Thus, inadequate monsoon might result in
falling revenues and profit.

Economic Risk:
Sluggish growth of the economy impacts the spending power
reducing consumption. Overall macroeconomic instability
results in a lower demand. Thus fluctuations in the economic
scenario possess a major risk to the business of the company.
Performance of the backward and forward linked industries is of
vital importance for the logistics sector to perform.

Social and Political Risk:

Government policies play a major role in determining the fate of
an industry. Relaxation of various regulations and simplification
of tax regime give the much needed push to the concerned
sectors. Change in orientation with change in government
possesses a threat to the business.
A. Means of Communication:

i. Website:
The Company’s official website contains
the information pertaining to the Company that it is in
compliance with the Listing Regulations. A separate section for
investors is available wherein the updated information
pertaining to quarterly, half-yearly and annual financial results,
official press releases and presentations, if any, shareholding
pattern, etc. is available in a user-friendly and downloadable
ii. Financial results:
The quarterly, half-yearly and annual financial results of the
Company are uploaded on NSE Electronic Application
Processing System (NEAPS) and BSE Listing Centre in
accordance with the Listing Regulations. The financial results
are displayed on BSE and NSE websites and are also published
in ‘The Business Line’ (English) and ‘Vijayvani’ (Kannada)
newspapers within forty-eight (48) hours of Board approval
thereof and posted on the Company’s official website.
iii. Annual report:
Annual Report containing, inter-alia, the Audited Standalone
and Consolidated Financial Statements, Board’s Report,
Auditor’s Report, Corporate Governance Report, Business
Responsibility Report, Management Discussion and Analysis
Report is circulated to members and others entitled thereto. The
same is made available on the Company’s official website under
the web link: stakeholders.html
iv. Exclusive designated email address:
In terms of the Listing Regulations, the Company has designated
a separate email Id for dealing with Investors’ queries and
complaints viz., investors@ v.

SEBI Complaints Redressal System (SCORES) is an online
facility, where investors can submit their complaints for
Redressal by the RTA/Company.


A. Revenue Recognition:
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Group and the revenue can be
reliably measured, regardless of when the payment is being
made. Revenue is measured at the fair value of the consideration
received or receivable, taking into account contractually defined
terms of payment, inclusive of excise duty and net of taxes or
duties collected on behalf of the government. The Group has
concluded that it is the principal in all of its revenue
arrangements since it is the primary obligor in all the revenue
arrangements as it has pricing latitude and is also exposed to
inventory and credit risks. Sales tax/ value added tax (VAT) is
not received by the Group on its own account. Rather, it is tax
collected on value added to the commodity by the seller on
behalf of the government. Accordingly, it is excluded from
revenue the specific recognition criteria described below must
also be met before revenue is recognized

Sale of products:
Revenue from the sale of goods in the course of ordinary
activities is measured at the fair value of the consideration
received or receivable, net of returns, trade discounts and
volume rebates. This inter alia involves discounting of the
consideration due to the present value if payment extends
beyond normal credit terms. Revenue is recognized when the
significant risks and rewards of ownership have been transferred
to the buyer, recovery of the consideration is probable, the
associated costs and possible return of goods can be estimated
reliably, there is no continuing effective control over, or
managerial involvement with, the goods, and the amount of
revenue can be measured reliably. The timing of transfers of
risks and rewards varies depending on the individual terms of
Sale of goods – customer loyalty programme (deferred revenue)

For customer loyalty programmes, the fair value of the

consideration received or receivable in respect of the initial sale
is allocated between the award credits and the other components
of the sale. The amount allocated to award credits is deferred
and is recognized as revenue when the award credits are
redeemed and the Group has fulfilled its obligations to supply
the discounted products under the terms of the programme or
when it is no longer probable that the award credits will be

Sale of services :
Service revenues are recognized as the services are performed.
Services provided pursuant to a contract are either recognized
over the contract period or upon completion of the elements
specified in the contract depending on the terms of the contract.
Operating revenues from the distribution and maintenance of
vending machines are recognized when the services are
rendered. Revenues include unbilled as well as billed amounts.
Sale of import entitlement:
Import entitlements, which are primarily provided for shipping a
specified cumulative volume or shipping to/ from specific
locations, are recorded on accrual basis based on actual export
revenue for the year and pro-rated based on actual or projected
realization of the entitlement. When using realization, we rely
on historic trends as well as economic and other indicators to
estimate the recorded revenue for import entitlements.
Franchisee revenue:
Revenue from franchisee arrangement consists of sale of coffee
products and other related products as well as royalties paid by
franchisees to use the ‘Coffee Day’ brand. Sales of coffee
products and other related products are recognized on transfer of
all significant risks and rewards of ownership to franchisee.
Royalty revenues are recognized based upon a percentage of
reported revenues by the franchisee in accordance with the
terms of the relevant arrangement unless significant future
contingencies exist.

Advertisement Income:
Income from advertising is recognized ratably over the period of
the contract and in accordance with the terms and conditions of
the contract. Commodity trading Gain/ loss from commodity
future transactions is settled on a net basis and recognized on
accrual basis in the statement of profit and loss.
Other income:

"Interest income from debt instruments is recognized using the

effective interest rate method. The effective interest rate is the
rate that exactly discounts estimated future cash receipts through
the expected life of the financial asset to the gross carrying
amount of a financial asset. When calculating the effective
interest rate, the Group estimates the expected cash flows by
considering all the contractual terms of the financial instrument
but does not consider the expected credit losses. Dividends are
recognised in profit or loss only when the right to receive
payment is established, it is probable that the economic benefits
associated with the dividend will flow to the Group, and the
amount of the dividend can be measured reliably."
SWOT of Cafe Coffee Day
The SWOT of Cafe coffee day discusses the strengths,
weaknesses, opportunities and threats for the leading coffee
chain in India – Cafe coffee day.
Strengths in the SWOT analysis of Cafe coffee day

 Products of extremely good quality and taste – The coffee

menu of Cafe coffee day is renowned and people just love its
shakes as well. Besides this, Cafe coffee day has also started
some sandwiches and tid bits which are a huge hit with people
as well.
 It’s a youth oriented brand, with appeal for the masses – It has
a huge potential as 40% of the people who enter a CCD are
 It produces/grows the coffee it serves hence reducing the cost –
This is a major point for Cafe coffee day and the backwards
integration saves a lot of cost.
 Its USP is affordability with comfort – You can sit for a whole
day in cafe coffee day and no one will ask you to leave. This
comfort is a major USP of Cafe coffee day. At the same time,
the menu is affordable so people come from time to time to have
their comfort time in CCD.
 Losing its charm – The brand has lost its charm which it had in
the start mainly because it is not investing in promotions and the
entry of Starbucks as well as various local competition has
affected the brand image.
 Lacks strength to maintain brand loyalty – It has become the
neighborhood coffee shop but not something that people stay
loyal to.
 Poor Ambiance and decor – Many Cafe coffee day outlets have
very poor ambiance and decor. The flagship stores are
maintained perfectly and are driving the brand image. But there
are also stores opened with poor interiors. Something which the
brand should take care of because it is a franchise model.
 Many of the CCD stores are incurring losses due to wrong site
selection – This has been hurting CCD over time as many stores
with the brand name of CCD have been open at the wrong site
and not on main roads. Being a retail establishment, this affects
turnover and the brand name as well.

Opportunities in the SWOT analysis of Cafe coffee day

 Introducing more products and better items in the menu –

Starbucks is being loved because it has several benefits over
Cafe coffee day. One of the benefits is a better menu of things to
eat along with the coffee.
 Better interiors – Cafe coffee day needs to maintain standards
in the interiors of all outlets that it has. As you move out of the
city, you will find the interiors to be even more shabby. This
reflects badly on the quality and consistency of the brand.
 Coffee cafe industry is one of the fastest growing industries in
Asia – This is actually true and the awareness is increasing with
more and more international level players entering the market.
 More people like to visit CCD for informal meetings – Again
true. Cafe coffee day can market itself as a meeting point as well
as an informal gathering point, just like McDonalds has birthday
section in various outlets.
 CCD has gone international, and is planning to attract many new
international markets, hence gaining international recognition
Threats in the SWOT analysis of Cafe coffee day

 Competition – Cafe coffee day has a lot of competition

especially with other coffee cafes like Barista, Mochas,
Starbucks, Costa coffee and others.
 Indirect competition – Other hukka palours like Sheshas ,
Peshawar , Koylas, U Turn are also gaining lot of attention and
preferred by young generation to hang around which in turn is
attracting the market captivated by CCD
 Marketing Mix Cafe Coffee Day
The leading coffee chain across the world, Cafe coffee day has
several products which appeal to the Indian audience and it has
a price which is very much affordable for the upper middle class
of India. The promotions are amazing and it has numerous retail
outlets which are growing in number across India. This article
discusses the marketing mix of Cafe coffee day.

Product in the Marketing mix of Cafe coffee day

Café Coffee Day product mix constitutes a wide range of
products that appeal primarily to Indian coffee and snack lovers.
Products have a decided Indian taste to it – be it food or
coffee. Most of the eatables have been adopted to meet the Indian
taste buds like samosa, biryani, masala sandwich, tikka sandwich
etc. Thus they have been trying to capture the Indian taste along
with classic coffee. The best selling item in summer is frappe,
which is coffee and ice cream blended together. The
young people favor it. In winter it is cappuccino. Their
merchandising includes funky stuff like t-shirts, caps etc.

Price in the Marketing mix of Cafe coffee day

Considering that Café Coffee Day knows its major customer lies
in the bracket of 15- 29, it has tried to derive a policy whereby it
can satisfy all its customers. The price for a cup of coffee ranges
from Rs.45 to Rs 80. From the time it first started its operations,
there has been only minor changes in the pricing policy of Café
Coffee Day. The changes have been more due to the government
taxes than anything else.
Place in the Marketing mix of Cafe coffee day
The strategy CCD has adapted is to place a cafe in every possible
location where some business can be generated. This is a prime
factor in determining the success of a retail chain. Café Coffee
Day looks to cater to their target market with strategically located
Their outlets are generally located in High Street/ Family
Entertainment Centers, gas stations, near Collegesetc.

Promotion in the Marketing mix of Cafe coffee day

CCD is involved in all the areas of serious consumer passion
Television: Café Coffee Day held a contest around a very popular
programme on Zee English called Friends. All the six lead
characters are shown often visiting a coffee shop. They have tied
up with Channel [V]’s Get Gorgeous contest.
Tie-ups: Besides that Café Coffee Day also tie up lot of the youth
brands. So they have a contest going on with Levis, another one
with Scooty, Liril, latest one with Airtel Friends.
Association with movies:
CCD can be seen in movies like Khakhee and Mai Hoon Na
Sales Promotion: Cafe Coffee Day uses special ‘Café Citizen
Card’ for rewarding Café Coffee Day’s customers. It is a loyalty
program to gain new customers and retain the existing ones.
Process in the Marketing mix of Cafe coffee day:
The ordering and delivery process in CCD was earlier based on
self- service. But now in most its coffee shops the waiter comes
and takes away the order and delivers the order on table.
Physical evidence in the Marketing mix of Cafe coffee day:
a) Logo, image, brand: Café Coffee Day has used bright red and
green colors in its logo. RED stands for leadership, vitality,
passion for coffee. The GREEN stroke harks back the coffee
plantations that they own. Cafe is noticeably larger in the logo to
denote that Café Coffee Day pioneered the cafe concept in India
way back in 1996.The font looks as though the letters have
congealed out of a liquid.
b) Architecture and Decor: Largely wood and granite based
interior with young colours of today, like lime green, yellow,
orange, and purple predominate.

c) Literature: The literature provided by Café Coffee Day is

indicative of its youthful image. The menus, posters, pamphlets
are all designed to attract young and young at heart.

People in the Marketing mix of Cafe coffee day

People at Café Coffee Day believe that “People are hired for
what they know but fired for how they behave”. Motivation and
personal skill are laid emphasize upon. Their employees are like
friend to the customer but at the same time they know about
the international standards of hygiene and cleanliness and
personal grooming.

Cafe Coffee Day Marketing Strategy

CCD today has become the largest youth aggregator, and from a
marketing standpoint, the success has come by focusing on
the 3As: Accessibility, Affordability, and Acceptability.”–
Bidisha Nagaraj, the Marketing president of Cafe Coffee Day.

Competitive advantage in the Marketing Strategy of Cafe

Coffee Day –

The vast range of food & beverages, strategically located outlets,

reduction in prices, venturing out into tier-2 cities of India &
foreign lands is some of the winning strategies which helped
CCD to be ahead of its competitors. Its various subsidiaries
like Coffee Day Fresh ‘n’ Ground, Coffee Day Square, Coffee
Day Beverages etc. has helped the company to cater to customer
growing needs and be competitively ahead at the same time.

BCG Matrix in the Marketing Strategy of Cafe Coffee Day –

Café Coffee Day flagship outlets are the question mark due to the
fact that competitors like Starbucks, Barista, and Costa-Coffee are
playing hard to capture the market. Also, relatively other player
offerings are economical then CCD and due to its wrongly
located outlets in some of the metros Cities Company is suffering
from heavy loss.
Its other concept outlets like Coffee Day Fresh ‘n’ Ground,
Coffee Day Square, Coffee Day Beverages etc. are also the
question mark as these outlets are not able to attract targeted

Distribution strategy in the Marketing Strategy of Café

Coffee Day –
As of March 2015, there are 1530 outlets across 29 states of
India. Cafe Coffee Day has also expanded outside India with its
outlets in Austria (Vienna), Czech Republic, Dubai, Malaysia &
Cairo, Egypt. The Indian organized sector has a potential for
around 5,000 cafés but fewer than 1,000 cafés exist currently.

Brand equity in the Marketing Strategy of Cafe Coffee Day –

Cafe Coffee day was named “most popular hangout joint amongst
youth” at the 3rd Global Youth Marketing Forum in 2011. The
Indian Hospitality Excellence Awards also named it “India’s most
popular coffee joint” in 2011.
According to the Brand Trust Report 2012, Cafe Coffee Day was
ranked 125th among India’s most trusted brands and
subsequently, according to the Brand Trust Report 2013, Cafe
Coffee Day was ranked 210th among India’s most trusted brands.
Competitive analysis in the Marketing Strategy of Cafe
Coffee Day
The entry of global players like Starbucks and Dunkin’
Doughnuts will expand the consumption level which will work in
favor of all retail players but given the fact that CCD is now
looking beyond just a mass market presence making a profit is
becoming challenging for it. In fact, average realization per
customer of CCD is much less than some of its competitors in the
market space.

Market analysis in the Marketing Strategy of Cafe Coffee

Day :
Coffee consumption in India is growing at 6% per annum
compared to the global 2% plus. In India, the per capita
consumption of coffee is around 85 grams while it is six kgs. In
the US. Coffee bars have 5% penetration in India which itself
portrays the opportunity lying ahead.

Customer analysis in the Marketing Strategy of Cafe Coffee

Day :
The majority of CCD’s customers fall within the age group of 20-
35 years. The group comprises of main college going students &
young working professionals.
Cafe Coffee Day Conclusion
Business has remained the leading market player for more than a
years. It has institutionalised its methods and culture to align
itself with the market changes and consumer behavior, which has
actually ultimately allowed it to sustain its market share. Though,
Business has actually established significant market share and
brand name identity in the urban markets, it is recommended that
the business should concentrate on the backwoods in terms of
developing brand name commitment, awareness, and equity, such
can be done by developing a specific brand name allowance
method through trade marketing tactics, that draw clear
distinction in between Cafe Coffee Day items and other rival
items. Additionally, Business ought to utilize its brand picture of
safe and healthy food in catering the rural markets and likewise to
upscale the offerings in other classifications such as nutrition.
This will permit the company to establish brand equity for freshly
presented and already produced products on a greater platform,
making the effective use of resources and brand image in the