MadrasCoffeeHouse

™

PROFILE

About the Company

Situation Analysis

Menu

Gallery

India Coffee Industry and Consumer Patterns

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COMPANY NAME Vel Chakra Coffee Private Limited

BRAND NAME Madras Coffee House

HEAD OFFICENo.16/31, Kandappa Chetty Street,Kothawal Bazaar, Chennai - 600 001

YEARS IN OPERATION 5 Years

TOP MANAGEMENTM. Kumaaravelan

P. Prasanna Venkatesh

INDUSTRY & SEGMENT SECTOR Food and Beverages

TARGET CUSTOMERS Medium and High end

PRODUCT MIXSouth Indian Filter Coffee, Tea, Milk, Horlics etc.

RETAIL FORMAT Kiosk (30) & Shop (5) : Total : 35

SALES (%) & GROSS MARGIN F, B (20%, 80%), F, B (50%, 65%)

GEOGRAPHICAL PRESENCE Chennai, Bangalore, PuneAbo

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About

Product Mix

The Madras Coffee House was founded by Mr. Kumaaravelan known in South Indian Hotel Industry and co-founded by young entrepreneur Mr. Prasanna Venkatesh.

Famous for world’s finest filter coffee served in authentic Madras Style.

Computerized billing system in place along with monitoring system to maintain stock, quality, food cost at each outlet.

FILTER COFFEES AND SNACKS

Coffee / Tea / Milk / Boost / Horlicks / Bournvita / Green tea / Samosa, Cookies / Lemon tea / Aqua Fina (750ml) / Puffs / Nes Coffee / Bru Coffee / Complan / Somosa etc.

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Our BranchesDLF 24

Central Railway Station 24

Express Avenue 50

Bazullah Road 50

Chennai Silks - T. Nagar 50

Airport-1 (Domestic Arrival) 100

Airport-2 (International Departure) 100

Airport-3 (International Arrival) 100

Ambit IT Park 60

Veppery 110

Nungambakkam 162

Ascendas IT Park 150

Chetpet 200

GP Road 100

Ashok Nagar (10th Avenue) 60

Eldams Road 120

TCS - Siruseri 100

K.K.Nagar MOBILE VAN

Apollo Hospital 50

Chettinad Hospital 50

Ranipet Highway 50

Infosys IT Park 100

VGP - ECR 50

Trichy Highway 500

Velachery - Chennai Silks 50

Forum Mall 60

Spencer Plaza 50

Alwarpet 50

Ramanujam IT Park 50

Anna Nagar 100

Acendas Phase-3 50

RMZ - IT Park 2000

Majestic Railway station Bangalore-1

50

Bangalore-2 50

Pune Amonora Mall - Pune 650

35 Locations 35 LocationsExisting Area (Sq.ft) Existing Area (Sq.ft)

Shop with Seating Capacity of 16 and 12 respectively Madras Coffee house are spread overmalls, clinics, IT Parks and residential.

Most of the locations open for 12-16 hours, except Central one which is open 24 hours of a day.

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Spl. Filter Coffee 40 15

Spl. Tea 40 15

Lemon Tea 25 20

Green Tea 40 20

Ginger Tea 30 20

Black Tea 40

Black Coffee 40

Cold Coffee 100 60

Milk 40 15

Parcel Coffee 40 25

Parcel Tea 40 25

Parcel Milk 40 25

Samahan 20

Horlicks 50 20

Bournvita 50 25

Boost 50 20

Viva 25

Complan 25

Slice 28

7 UP 30

Miranda 30

Pepsi 25

Aqua Fina 1 Ltd 20

Water bottle 30

HighestPrice (INR)

HighestPrice (INR)

LowestPrice (INR)

LowestPrice (INR)Total Items (24) Total Items (24)

BeveragesMENU

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HighestPrice (INR)

LowestPrice (INR)Total Items (24)

HighestPrice (INR)

LowestPrice (INR)Total Items (24)

Food MENU

taste budsa reason to wake up

Giving your“”

Samosa (1 pc) 40 5

Puffs (1 pc) 20

Cookies (3 pcs) 40 10

Mini Puffs (4 pcs) 10

Sweet Puffs (4 pcs) 10

Vada (1 pc) 15 10

Sundal 60 25

Milk Khoa 18

American Sweet Corn

60 25

Veg Roll 50

Veg Puffs 40

Sandwich 65

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GALLERY

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GALLERY

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INDIACOFFEE

INDUSTRY &CONSUMERPATTERNS

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Global - Coffee Industry Overview

Guantemala

55900

25000

9700

7500

6500

5800

5300

4800

4700

3850

22233

0 10000 20000 30000 40000 50000 60000

Brazil

Vietnam

Indonesia

Columbia

Ethiopia

Honduras

India

Peru

Mexico

Other

Global Coffee Production (2012/2013) Thousand 60 kg bags

India is the world’s sixth biggestcoffee producer (Brazil, 1st)

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India’s Coffee Industry Overview

43754825 5035 5200 5100 5300

0

1000

2000

3000

4000

5000

6000

2008/2009 2009/2010 2010/2011 2011/2012 2012/2013(JUNE)

2012/2013(DEC)

Thousand 60 Kgs Bags

Karnataka accounts for some 70% of the country’s coffee production.

India’s coffee production in marketing year 2013-2014 (starting October) is forecast at 5.2 million bags, similar to the last year.

India’s coffee consumption is increasing at 6% a year. According to the government, the country’s consumption in 2009-10, 2010-11 and 2011-12 was 1,02,000 mt, 1,08,000 mt and 1,15,000 mt, respectively.

Source: USA Department of Agriculture Report (2012)

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13251575 1570 1660 1675 1640

0200400600800

10001200140016001800

2008/2009 2009/2010 2010/2011 2011/2012 2012/2013(JUNE)

2012/2013(DEC)

Arabica Coffee Production India(Thousand 60 Kgs Bags)

30503250

3465 3540 34253660

2600280030003200340036003800

2008/2009 2009/2010 2010/2011 2011/2012 2012/2013(JUNE)

2012/2013(DEC)

Robusta Coffee Production India(Thousand 60 Kgs Bags)

Total Coffee exports were down at INR 2,545 crore as against INR 2,609 core between January and June (2013).

India’s coffee exports have declined by 2.85 per cent to 1,72,480 tonnes so far in the calendar 2013 due to weak global prices (Coffee Board, India).

Although, international prices have been falling, global supplies have exceeded demand particularly in Brazil.

Export of ARABICA coffee declined to 35,560 tonnes from 36,843 tonnes(Jan (12/13)-June (12/13).

Shipment of ROBUSTA coffee bean fell marginally to 93,213 tonnes till first week of June as against 98,863 tonnes in the year ago period.

Source: USA Department of Agriculture Report (2012)

Types of Coffees : Arabica and Robusta

The world’s finest filter coffeeserved to you inauthentic

MADRAS STYLE

“

”

Consumer Trends

Drinking coffee and having causal business meetings along , is becoming a common trend. There is 55 percent increase seen in meetings happening around the coffee table which has made many coffee shop holders to come up with special offers and attractions.

Coffee Shop owners are bringing out tie-ups with corporate, offering clients special discounts, ensuring customer loyalty .e.g. Barista has a tie up with IBM and its employees get a minimum of 10-15 percent discount on all Barista products; Bak Bak Bar in Koramangala have tie ups with IT companies like Oracle, Accenture, Infosys and Bosch, for formal as well as informal meetings.

Most of the coffee shop owners are making cafe meetings a fixture with special corners reserve for meetings. “Huddle room concept”. The meetings could be about anything from meeting financers, to strategic parents to holding hiring and staffing meets. The average spend on a person ranges between INR 150 and INR 400.

What consumers seem to want is a calming ambience, secluded corner and most importantly availability of enough parking space.

Source: “Economic Times Article”, 2013 (Koramangala lounges cash on corporate meets, offers smart discounts.

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Outside Home Consumption of Coffee

While Travelling

Airport / Train Station

At Special Event / Function

While out for entertainment

While as a Guest in

Someon's House

CollegeOfficeCoffee Shop

6456

27

158 6

6557 54

45

63 59

3732

4943

FREQUENCY OF CONSUMPTON

50 14 73 31 56 17 17 3 14 4 6 1 5 1 5 1

All figures in %

Regular Drinker = % Drink 1-2 times everyday including yesterday + % Drink 1-2 times a week

Regular Occasional

LOCATION

Among those who drink coffee outside

Source: Coffee Board of India Report, 2007

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Regular Beverage Consumption – Urban

West

East

North

Kerala

Andhra Pradesh

Karnataka

Tamilnadu

Total 15

21

29

13

8

8

3

7 19

22

17

20

26

9

18

18

Coffee Total

26

25

25

28

39

38

39

33

Tea

58

43

40

42

69

81

75

77 15

20

17

28

45

18

32

26

Total

92

95

98

97

87

58

75

84

Maltova/ Complan/Horlicks/ Boost/

BournvitaPlain Milk

8

11

9 15

26

26

2 14

3 36

14

11 22

14 27

57

Total

41

33

71

39

16

24

37

34 2

3

5

20

19

3

3

5 4

14

11

7

11

12

Total

14

14

12

20

20

17

14

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Drink more than 2 times everyday including yesterday Drink 1-2 times everyday including yesterday All figures in %

In KN and TN, percentage of heavy drinkers (who drink coffeemore than 2 times a day) is higher than in other regions

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Source: Coffee Board of India Report, 2007

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SPECIALITY

Finest Filter Coffee in authentic

Madras style

AffordablePrice

Maintenance of Proper Hygiene

Standards

MadrasCoffeeHouse

A place to attain“Coffee-nirvana”

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Conclusions

There is increasing demand of coffee in India, as Indian middle class consumer are ready to spend more on global lifestyle and culture. This has resulted branded players like Costa coffee and Barista to go on expansion spree and tap the market.

Coffee has changed from being a traditional beverage consumed mainly in South India, to a youthful and trendy beverage with a national presence, consumed in several forms and retail formats. However, there are only few kiosk coffee shops that provide filter coffee in India.

In Karnataka, coffee has very strong associations with ‘Family beverage’. Interestingly, it also has special/high status perceptions.

Coffee drinking has become a synonymous for a certain strata of society as your younger, you are cooler and you are affluent.

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MadrasCoffeeHouse

™

No. 16/31, Kandappa Chetty Street,

Kothawal Bazaar, Chennai - 600 001

91766 00777 • 99620 17223

kumaaravelan.m@gmail.com

ragpra2002@gmail.com

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