Friday, September 22, 2006

Barista plans to sell 20% stake to fund expansion

The Economic Times reports:

Barista will be adding 100-120 new cafés each year for the next three years and plans to fund its expansion by selling 15-20% of its stake in the company. Barista is also planning to open cafés in Bahrain, Oman and Bangladesh by year end and Qatar and South East Asia next year.

Sterling Group, promoters and owners of the Barista chain of cafés will be divesting 15-20% of its equity. According to Partha Dattagupta, CEO of Barista the company will be “…expanding from 25 cities to 40 this year. This apart, we will also be investing in back-end infrastructure as well as renovation of existing stores and facilities.”

The company will be investing an estimated $43.35 million over the next three years to open new outlets. The company has appointed Standard Chartered to look for investors and chart their growth plan.

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