Sidddharth Khemka to seek valuation between Rs.8,000 crore to Rs.10,000 crore
India's one of the famous Coffee shop founder VG Siddharth Khemka is seeking Rs.8,000 crore to Rs.10,000 crore from Coca-Cola for his coffee chain.
For this Khemka said that, "CCD is the only pan-India coffee retail chain, the rest have not been able to-scale to its level. While Starbucks is doing good, it doesn't have so many outlets. This also would fit with the strategy of Coca-Cola to diversify into other products considering that there is growing awareness against sugary and carbonated drinks. Going by the way the country is getting to be outdoor-consumption oriented. There is social-ostracism in cola category, and that would be why Coke is looking for a footprint in the staple beverages market."
for Coca-Cola this deal means to diversify its products with the awareness coming up against the carbonated and sugary drinks.
Initially the CCD started from Bengaluru in year 1996 and now the shops around the country is about 1,750 and in world its around 60,000.
In year 2018 CCD filings says it earned an amount of Rs.1,777 crore and in 2019 it earned around Rs.1,814 crore.
Company after seeking money from Coca-Cola expects its sale to be three to four times up by the year ending march 2020.
Siddarth is also having a 20,000 acre plantation and he is India's one of the largest planters.