Kalmane Koffees, which currently boasts of seven outlets in the City’s premium malls proposes to open a total of 25 more outlets in Bangalore, Mangalore and Mumbai by next year.

The expansion weaves well into Chikamagalur-based Kalmane’s forward integration plans from their large plantation activities into the booming retail space.

In an informal tete-a-tete with Deccan Herald, Kalmane Koffees Partner Dhiraj Prabhu said the company has signed already Letters of Intent with respective owners of space for putting up the outlets.

India footprint

While 15 of these outlets will come up in various pockets in the City providing Kalmane Koffees a pan-Bangalore footprint, nine will come up in Mumbai and one in Mangalore.  Once this critical mass is reached, Mr Prabhu averred, it will provide Kalmane Koffees the sufficient scale and necessary fillip to spread its wings in other important Indian cities such as Hyderabad, Chennai, Chandigarh, Coimbatore and Delhi, thereby providing the company necessary spread, reach and presence.

Healthy margins

Stating that each of the outlet involves an investment of around Rs 20 to 25 lakh for setting up, Mr Prabhu said, the company meets the expansion spend through internal accruals with marginal debt exposure of around 0.25 per cent. 

Pointing out that Kalmane Koffees is retailed at a healthy margin of 35 to 40 per cent, Mr Prabhu said the compa
ny has been logging a 100 per cent compounded annual growth rate year on year since inception in June 2004.
The company, which reported a sales turnover of Rs 2 crore for the fiscal year ended March 31, 2008, expects to double the same in the current fiscal and there on touch around Rs 10 crore to Rs 12 crore sales by 2010 and number of retail outlets too spread across other cities in the country.

Further, Mr Prabhu said, at each of the current outlets, Kalmane Koffees saw a healthy ratio of 72:28 per cent sales in liquid and powder coffees.

Kalmane Koffees liquid coffees offerings come in an array of nearly 25 different flavour and specialised preparations with price ranging from Rs 25 to Rs 70 and its powder coffee come in different exotic name and blends and their price ranges from Rs 60 to Rs 110 for various packets.