Coffee Day Enterprises, WMF to manufacture coffee machines

Cafe Coffee Day's parent company Coffee Day Enterprises Ltd (CDEL) said on Monday that it will manufacture coffee vending machines in Chikmagaluru in partnership with leading German automatic coffee machine manufacturer WMF.

"We currently manufacture coffee vending machines in Benglauru... in eight to 12 months time, we will start joint manufacturing of coffee machines in Chikmagaluru with German giant WMF. WMF is the Rolls Royce of coffee machines," said CDEL chairman V.G. Siddhartha.

"The new coffee machine manufacturing plant at Chikmagaluru is one part of the Rs.42 crore doubling of coffee roasting business," he added, without giving the exact amount earmarked for the new coffee machine manufacturing unit.

Though the new manufacturing plant will serve India as its primary market, Siddhartha said the machines will also be exported to southeast Asian nations.

Once the new CDEL-WMF coffee machine manufacturing plant opens in Chikmagaluru, 243 km from here, CDEL will cease manufacturing coffee machines in the state capital, Siddhartha added.

Currently, CDEL manufactures 6,000 coffee machines a year in Bengaluru counting corporate, educational institutions, hospitals and hotels as its clientele.

"We aim to make more than 6,000 coffee machines a year with our new joint venture," added Siddhartha.

CDEL has installed 30,900 coffee vending machines across the country capturing a coffee vending machine rental market share of 95 percent, he said.

WMF was founded in 1853 in Germany and manufactures coffee machines, consumer products and hotel equipment.