In a significant move, Barista Coffee Company Ltd has recently entered into a 51:49 equity joint venture with Jewelex Trading Ltd of Colombo, Sri Lanka, as part of its expansion plans.

Says Mr Ravi Deol, managing director, Barista Coffee Company, "With the move, a joint venture company called ‘Barista Coffee Lanka Pvt Ltd’, with Barista holding the majority stake, has been formed to enable this expansion."

In the first phase, the new joint venture company is planning to set-up nine ‘Barista Coffee’ outlets in Sri Lanka, at an investment of Rs 3 crore, within a year." In the second phase, we may consider setting up a new concept bar ‘Pavement Bar’ at Taj Samudra in Colombo. This strategic alliance will strengthen Barista Coffee’s leadership in its experiential category giving it an early mover advantage. The alliance will provide a strong coffee platform for Barista in the coffee retail segment in Sri Lanka."

According to Mr Deol, the company plans to build its espresso bars on the same format as those in India, ensuring that the essence of the Barista brand remains intact." This venture will give us a competitive edge because of the inherent marketing strengths of Jewelex Trading which is one of the business houses in Sri Lanka catering to high-end brands in US and Europe such as Marks & Spencer, Victoria’s Secret, Calvin Klein and GAP."

On Barista’s future plans for the Indian market, says Mr Deol: "In a bid to reach out to a wider audience in the Indian market place, we are planning to set-up 37 more Espresso Bars spread across cities such as Bhubaneshwar, Ranchi, Jamshedpur, Cuttack, Patna, Amritsar, Jaipur, Jalandhar, Panchkula, Nagpur, among others, by 2003-end."

Currently, Barista operates 110 Espresso Bars spread across major cities in India." We also have a concept bar called ‘Pavement Bar’ at the Taj poolside, Taj Mahal Hotel, Mumbai, a 24-hour coffee shop for consumers who want to have coffee at odd hours," adds Mr Deol.

Ushering in the festive season, the company has recently rolled out a host of new marketing initiatives at the retail-end to woo consumers. Says 
Mr Sandeep Vyas, head of marketing division, Barista Coffee Company Ltd: " We have recently upgraded the merchandising of existing ‘Barista Coffee’ outlets designed to reflect the spirit of Italy.To deliver an authentic Italian experience, we have sourced 100 per cent Arabica Coffees, which are roasted as per the specifications of our Italian roast-master. We have even launched Italian Food called ‘Baguees’ and ‘Foccia’ and new range of desserts at out outlets."

Further, in order to implement its initiatives of customer loyalty programme, the company may consider launching a co-branded plastic card with smart chip, in the near future, informs Mr Vyas. However, he was reluctant to divulge further details. Concludes Mr Deol:" With the move, we aim to achieve a sales turnover of Rs 100 crore by March 2003-end."