Hilite Group and Beans and Flavours anounce expansion plans

The domestic Indian coffee market is one that we like to keep a trained eye upon as we believe it is one of the most diverse and intriguing national sectors around.

With a population of over a billion people and some of the most vibrant cities in the world, the nation is slowly but surely taking to the ‘western’ coffee culture that many of us are normally familiar with. But that transition hasn’t been smooth, nor has it been easy – as many of the global giants have found out to their detriment in recent years.

International chains such as Starbucks have certainly wormed their way into the subconscious of many Indians, but those companies that have succeed so far have – typically – done so with the help of a domestic partner. Others, like Lavazza, who pulled the plug on their loss making Barista venture not too long ago, have suffered. India may be a vast, expansive and profitable nation for many businesses, but it’s a tough nut to crack. Having an established foothold in the country is imperative and brand loyalty is vital to success in the face of a swathe of newcomers. And that’s why we’re intrigued by this piece of news.

The Hilite Group, a company with history in the property development business, and Beans and Flavours, a small coffee company operating of the Idukki District in southwest India, aim to “set up a chain of 100 coffee shops…within three to four years.”

P Sulaiman, of the Hilite Group, announced that “the first two [stores] will be opened in Kozhikode (Calicut)” later this year.

“A coffee shop culture is slowly being developed in Kerala, especially in the Northern districts [due] to the influence of towns like Bangalore,” Sulaiman added.

Beans and Flavours’ owner Rinu Eldo Jacob has already opened his first coffee shop in the town of Kuttikkanam, near Peermade. However he divulged some information about his company’s planned expansion. “[We] plan to open branches near tourist spots in the High Ranges on a franchisee basis,” he said.

This new venture may not have the national name recognition of Cafe Coffee Day, but by starting out close to home, this startup has a chance to succeed where many others have failed. And by picking tourist locations they appear to have a sound strategy in place to ensure that they attract plenty of footfall.

But will they succeed?