Eltex partners German, Italian firms

Coimbatore-based Eltex Group has partnered Mahlkonig of Germany and CMA of Italy to float Kaapi Machines-India for sale and service of coffee making equipment like grinders and espresso machines for the corporate, retail and household segments.

Kaapi Machines will be headquartered in Coimbatore and have a 33.3 per cent stake by all the three entities. It will market coffee grinders from Mahlkönig, Germany, as well as the Astoria and San Marino brands of Espresso Machines from CMA, Italy.

Announcing this here on Thursday, Suresh Jagannathan, Managing Director, Eltex Group said, "As domestic consumption of coffee is burgeoning, we are entering the market at the right time and offering quality equipment for discerning customers. Our attempt is to offer the retailer world-class equipment under one roof."

The company in the first phase plans to cover Chennai, Bangalore and Hyderabad, and later extend to the north. "The company hopes to achieve a turnover of $5 million in the next three years after it stabilises its operations," Jagannathan added.

The $35 million Eltex Group has business interests in coffee plantation machinery, wheat flour milling, textiles and many other engineering operations.

Mahlkönig is a family-run business with over 80 years of experience in coffee grinders at its facility at Hamburg. CMA Italy is the manufacturer of coffee vending machines.

Speaking on the occasion, Nils Erichsen, general manager, Mahlkonig, Germany said, "We are part of this joint venture in a market that has a large manufacturing base and appetite for coffee. We have been marketing our equipment in India, through Eltex for some time now and we are to consolidate our presence through this alliance."

CMA, Italy has been in Indian market for eight years with Cafe Coffee Day being the biggest customer, said Flavio Urizzi, Manager International Business of CMA, Italy.

"Italy is renowned for some of the world's best food processing equipment and we are happy to bring our expertise and market dominance in the espresso coffee segment to India through this joint venture," he added.