Madras

Coffee

House

PROFILE

About the Company ..... 03

Situation Analysis ..... 05
Menu ..... 06

Table of Contents

Gallery ..... 08
India Coffee Industry and
Consumer Patterns ..... 10

COMPANY NAME
BRAND NAME

Madras Coffee House

HEAD OFFICE

No.16/31, Kandappa Chetty Street,

Kothawal Bazaar, Chennai - 600 001

About the Company

YEARS IN OPERATION

Vel Chakra Coffee Private Limited

TOP MANAGEMENT
INDUSTRY & SEGMENT SECTOR
TARGET CUSTOMERS
PRODUCT MIX

5 Years
M. Kumaaravelan
P. Prasanna Venkatesh
Food and Beverages
Medium and High end
South 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, Pune

Product Mix
FILTER COFFEES AND SNACKS
 offee / Tea / Milk / Boost / Horlicks /
C
Bournvita / Green tea / Samosa, Cookies /
Lemon tea / Aqua Fina (750ml) / Puffs /
Nes Coffee / Bru Coffee / Complan /
Somosa etc.

About
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 worlds 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.

Our Branches
35 Locations Existing Area (Sq.ft)

35 Locations Existing Area (Sq.ft)

DLF 24

Apollo Hospital 50

Central Railway Station 24

Chettinad Hospital 50

Express Avenue 50

Ranipet Highway 50

Bazullah Road 50
Chennai Silks - T. Nagar 50
Airport-1 (Domestic Arrival) 100

Infosys IT Park 100

VGP - ECR 50
Trichy Highway 500

Airport-2 (International Departure) 100

Velachery - Chennai Silks 50

Airport-3 (International Arrival) 100

Forum Mall 60

Ambit IT Park 60

Spencer Plaza 50

Veppery 110

Alwarpet 50

Nungambakkam 162

Ramanujam IT Park 50

Ascendas IT Park 150

Chetpet 200
GP Road 100
Ashok Nagar (10 Avenue) 60
th

Anna Nagar 100

Acendas Phase-3 50
RMZ - IT Park 2000

Eldams Road 120

Majestic Railway station

50
Bangalore-1

TCS - Siruseri 100

Bangalore-2 50

K.K.Nagar MOBILE VAN

Pune Amonora Mall - Pune 650

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.

MENU

Beverages

Highest
Lowest
Total Items (24) Price (INR) Price (INR)

Highest
Lowest
Total Items (24) Price (INR) Price (INR)

Spl. Filter Coffee

40

15

Samahan

20

Spl. Tea

40

15

Horlicks

50

20

Lemon Tea

25

20

Bournvita

50

25

Green Tea

40

20

Boost

50

20

Ginger Tea

30

20

Viva

25

Black Tea

40

Complan

25

Black Coffee

40

Slice

28

Cold Coffee

100

60

7 UP

30

Milk

40

15

Miranda

30

Parcel Coffee

40

25

Pepsi

25

Parcel Tea

40

25

Aqua Fina 1 Ltd

20

Parcel Milk

40

25

Water bottle

30

MENU

Food
Total Items (24)

Highest
Lowest
Price (INR) Price (INR)

Samosa (1 pc)

40

Puffs (1 pc)
Cookies (3 pcs)

40

Milk Khoa

20

American
Sweet Corn

60

Veg Roll

50

Veg Puffs

40

Sandwich

65

10
10

Sweet Puffs (4 pcs)

10

Vada (1 pc)

15

10

Sundal

60

25

taste buds

p
u
e
k
a
w
o
t
n
a reaso
7

Mini Puffs (4 pcs)

Giving your

Highest
Lowest
Total Items (24) Price (INR) Price (INR)

18
25

GALLERY

GALLERY

INDIA
COFFEE
INDUSTRY &
CONSUMER
PATTERNS

10

Global - Coffee Industry Overview

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

22233
3850

Guantemala
Mexico

4700

Peru

4800

India

India is the worlds sixth biggest

coffee producer (Brazil, 1st )

5300

Honduras

5800

Ethiopia

6500

Columbia

7500

Indonesia

9700

Vietnam

25000

Brazil

55900
0

11

10000

20000

30000

40000

50000

60000

Indias Coffee Industry Overview

Thousand 60 Kgs Bags
6000
5000

4375

4825

5035

5200

5100

5300

2009/2010

2010/2011

2011/2012

2012/2013
(JUNE)

2012/2013
(DEC)

4000
3000
2000
1000
0
2008/2009

Karnataka accounts for some 70% of the countrys coffee production.

Indias coffee production in marketing year 2013-2014 (starting
October) is forecast at 5.2 million bags, similar to the last year.
Indias coffee consumption is increasing at 6% a year. According to
the government, the countrys 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)

12

Types of Coffees : Arabica and Robusta

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

Arabica Coffee Production India

(Thousand 60 Kgs Bags)
1800
1600
1400
1200
1000
800
600
400
200
0

1575

1570

1660

1675

1640

1325

2008/2009

Indias 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).

2009/2010

2010/2011

2011/2012

2012/2013
(JUNE)

2012/2013
(DEC)

Robusta Coffee Production India

(Thousand 60 Kgs Bags)
3800
3600
3400
3200
3000
2800
2600

3050

2008/2009

3250

2009/2010

3465

2010/2011

3540

2011/2012

Although, international prices have

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

3425

Export of ARABICA coffee declined

to 35,560 tonnes from 36,843
tonnes(Jan (12/13)-June (12/13).

2012/2013
(JUNE)

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.

3660

2012/2013
(DEC)

Source: USA Department of Agriculture Report (2012)

13

filter

The world

s finest

coffee

served to

you in

authentic

MADRAS S

TYLE

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.

Outside Home Consumption of Coffee

Among those who drink coffee outside

LOCATION
64

65
56

63

57

54

59
49

45
37

27
15

Coffee Shop

Office

43

32

College

While as a
Guest in
Someon's
House

While out for

entertainment

At Special
Event / Function

Airport / Train
Station

While
Travelling

FREQUENCY OF CONSUMPTON
50

14

Regular

73

31

56

17

17

14

Occasional

All figures in %

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

Source: Coffee Board of India Report, 2007

16

Regular Beverage Consumption Urban

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

Coffee
Total

15

Tamilnadu

21

43

38

40

39

42

20

28

69

17

25

81

26

Kerala

58

39

18

13

Andhra Pradesh

33

18

29

Karnataka

North

Total

Tea

Total

26

84
75

32

Plain Milk
8

11

58

18

45

28

17

26

26

9 15

87

2 14

97

98

14

Total

Maltova/ Complan/
Horlicks/ Boost/
Bournvita
Total

34

2 12

14

37

3 11

14

24

5 7

12

16

36

57

20

20

19

20

39

71

3 14

17

East 3

22

25

75

20

95

11

22

33

3 11

14

West

19

26

77

15

92

14

27

41

5 4

Drink more than 2 times everyday including yesterday

Drink 1-2 times everyday including yesterday

All figures in %

Source: Coffee Board of India Report, 2007

17

SPECIALITY
A place to attain
Coffee-nirvana

Finest Filter
Coffee in
authentic
Madras style

Madras

Coffee
Maintenance of
Proper Hygiene
Standards

House

Affordable
Price

18

 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.

Conclusions

19

Madras

Coffee

House
follow us:
madrascoffeehouse.filtercoffee
MCHchennai

www.madrascoffeehouse.com

No. 16/31, Kandappa Chetty Street,

Kothawal Bazaar, Chennai - 600 001
91766 00777 99620 17223
kumaaravelan.m@gmail.com
ragpra2002@gmail.com

20