Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
»
1-min read

Coca-Cola in Early Talks to Buy Significant Stake in Cafe Coffee Day: Report

The CCD deal aims to give Coca-Cola significant scale in the fast-growing café business as the aerated soft drinks segment has been slowing down.

Trending Desk

Updated:June 27, 2019, 11:08 AM IST
facebookTwitterskypewhatsapp
Coca-Cola in Early Talks to Buy Significant Stake in Cafe Coffee Day: Report
Representative Image (Reuters)
Loading...

Coca-Cola is in early talks to acquire a significant stake in India’s largest coffee chain Café Coffee Day (CCD), according to media reports. If the deal goes through, this would be Coca Cola’s second cafe chain investment after it acquired UK-based Costa Coffee for US $5.1 billion in September 2018.

The CCD deal aims to give Coca-Cola significant scale in the fast-growing café business as the aerated soft drinks segment has been slowing down, an executive with knowledge of the matter told Economic Times.

The discussions are currently being led by Coca Cola’s Atlanta office, the reports said.

Promoted by VG Siddhartha, Café Coffee Day is owned by Coffee Day Global, a subsidiary of Coffee Day Enterprises. Shares of Coffee Day Enterprises rose as much as 8.8% in intraday trade on Thursday following the stake sale buzz. At 10:22am, the stock pared some of its gains to trade at Rs 233.35, up 4.5%, on BSE.

CCD is India’s market leader in the organised café space with around 1,750 cafes across the country. Other players are far behind, with Barista operating 200 stores, Starbucks running 146 stores and Costa having just 50 stores in India.

However, CCD’s parent firm Coffee Day Global is reeling under heavy debt. As on 31 March 2019, Coffee Day Enterprises' total debt stood at Rs 6,547 crore, two-and-a-half times its net worth of Rs 2,529 crore. A stake purchase by Coca Cola can help the company clear some of its dues.

Interestingly, CCD promoter VG Siddhartha had sold 20.32% stake held by him and two CCD affiliate firms to Larsen and Toubro Ltd in March this year for Rs 3,200 crore, which was largely seen as a move to pare off debts.

| Edited by: Karan Anand
Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwitterskypewhatsapp
Most Active
Company Price Change %Gain
RBL Bank 500.40 -13.69
Yes Bank 83.25 -2.97
Bajaj Finance 3,323.10 -4.17
ACC 1,543.65 -1.50
Reliance 1,249.00 -1.02
Company Price Change %Gain
Biocon 240.35 -8.63
Yes Bank 83.25 -2.97
RBL Bank 500.35 -13.71
ICICI Bank 410.10 -2.05
HDFC AMC 2,316.85 6.76
Top Gainers
Company Price Change %Gain
NTPC 129.90 2.24
Titan Company 1,091.05 1.02
Coal India 221.90 0.73
TCS 2,076.95 0.53
BPCL 351.00 0.50
Company Price Change %Gain
NTPC 129.85 2.20
Coal India 221.95 0.68
TCS 2,076.95 0.55
ONGC 144.10 0.42
Power Grid Corp 205.90 0.27
Top Losers
Company Price Change %Gain
M&M 571.30 -4.37
Bajaj Finance 3,323.10 -4.17
Eicher Motors 17,664.00 -4.03
Hero Motocorp 2,387.40 -3.71
Tata Motors 154.85 -3.67
Company Price Change %Gain
M&M 571.35 -4.36
Bajaj Finance 3,322.05 -4.16
Tata Motors 154.80 -3.73
Hero Motocorp 2,387.65 -3.71
IndusInd Bank 1,421.45 -3.40

Live TV

Loading...
Countdown To Elections Results
To Assembly Elections 2018 Results