Tata Consumer possibly looking to join hands with CCD’s retail outlets
Category: #retail  By Pankaj Singh  Date: 2020-10-19
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Tata Consumer possibly looking to join hands with CCD’s retail outlets

TCPL (Tata Consumer Products) is apparently on the lookout for signing a partnership deal with Cafe Coffee Day’s retail outlets. The thought possibly takes shape on the back of the fact that the deal may offer synergy to the company with its branded beverage businesses, inclusive of Tata Starbucks.

As per The Economic Times, the Tata Group possibly has its eyes on the entire portfolio of CCD, including outlets, vending machines, and plantations for synergies. The only hitch that may prevent the deal include legal complexities cropping up from the former CCD promoter’s debt issues post his untimely demise.

Analysts claim that a deal with CCD’s outlets may provide Tata Starbucks with the access to both the premium as well as mass tea and coffee retailing platforms. Tata Starbucks, for the record, is an equal joint venture between Starbucks Corporation and the Tata Consumer, and it reported a 21% growth in the year 2020 so far. The brand owns about 185 stores in 11 Indian cities.

An official with the knowledge of the matter has apparently claimed that there are numerous possibilities in the purchase portfolio, however, how much of it may be feasible for Tata Consumer, in the face of the legalities, is still to be worked upon.

Tata Consumer has been quoted to have commented that the company periodically evaluates numerous growth opportunities. However, it will not be commenting on anything that may seem like speculation.

A senior official with direct knowledge of the matter has been quoted to state that Café Coffee Day has also been on the lookout for financial and strategic deals for its coffee retailing stores as a part of an overall restructuring exercise, apart from the vending machine business.

An earlier ET report had stated that Coffee Day has set a price tag of INR 2,000 crore for its vending machine business. It is plausible that TCPL may offer INR 1,000 crore upfront for this deal, sources say. For the record, Coffee Day has nearly 60,000 vending machines spanning captive markets, inclusive of offices, malls, schools, and colleges.

 

Source Credits: https://www.timesnownews.com/business-economy/companies/article/tata-consumer-eyes-partnership-in-cafe-coffee-day-s-retail-outlets/669309



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Pankaj Singh

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Pankaj Singh

Pankaj Singh Develops content for Market Size Forecasters, Algosonline, and a couple of other platforms. A Post Graduate in Management by qualification, he worked as an underwriter in the UK insurance domain before deciding to switch his field of profession. With exp...

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