INDIA – Coffee Day Enterprises, the operator of the Indian café chain, Café Coffee Day has announced that it has agreed to sell 49% stake in its consultancy services business to Japan-based Impact HD Inc.
The transaction is valued at US$15 million (Rs 104.45 crore) and will see Impact HD acquire a significant shareholding in Coffee Day Consultancy Services Pvt Ltd (CDCSPL).
In a regulatory filing seen by ET Retail, the deal will see CDCSPL carry out the business of providing consultancy services in the retail sector.
According to Coffee Day Enterprises, post subscription of equity shares by IHD, CDEL and CDGL will hold 51 per cent of the paid-up-equity capital of CDCSPL.
“The company has approved to enter into the share subscription and shareholders agreement between Coffee Day Enterprises Ltd (CDEL) along with its material subsidiary Coffee Day Global Ltd (CDGL) and Coffee Day Consultancy Services Pvt Ltd (CDCSPL) with Impact HD Inc, (IHD) for subscription to equity shares of the CDCSPL by IHD by investing rupee equivalent to USD 15 million for 49 per cent stake in the CDCSPL,” said the company in the filing.
Coffee Day group will have 51% stake in the joint venture which will particularly focus on offering consultancy services in the retail sector.
As part of the agreement, the subsidiary of joint venture company will operate and manage Coffee Day Fresh and Ground business.
Impact HD is one of Japan’s largest sales floor support service company and one-stop-shop company providing all requirements in field marketing related services.
It boasts of a vast experience, expertise and industrial know-how in sales & distribution and its main service areas include sales surveys, in-store sales promotion support and IoT signages.
Coffee Day Global Limited (CDGL) is India’s largest coffee conglomerate and operates a highly optimized and vertically integrated coffee business.
Apart from CCD (Café Coffee Day), the other coffee business divisions under CDGL include Coffee Day Beverages (Vending division), Coffee Day Fresh & Ground (Coffee bean and powder retail outlets) and Coffee Day Exports.
Coffee Day last year partnered with UberEats to launch a network of virtual restaurants available for delivery exclusively on Uber Eats app.
