Processing .....please wait.. 
The article has been forwarded.... 
Barista offers itself for sale
By agencies
|
Tuesday, 01 August 2006, 19:30 IST
MUMBAI: Popular coffee-brands and cafè chain Barista is looking for a buyer. Owned by Chennai based Sterling Infotech group, Barista’s 130-odd espresso bars are up for sale and is also looking for new investors.
Barista had pioneered the branded coffee culture in India. However, it had lost over to arch rival Cafè Coffee Day owned by Bangalore based Amalgamated Coffee Bean Coffee Trading with 300 and odd outlets to its credit.
It is currently held by NRI businessman C. Sivasankaran who is known for his proclivity to acquire ailing companies, turn them around and sell them for a profit. Barista has had four CEOs in the last five years that has also affected its management. It has had changes in ownership as well. Amit Judge of Turner Morrison founded the chain a couple of years ago and sold it to Sivasankaran at about $6.8 million, the remainder being picked up by the Tatas at an undisclosed amount. However the Tatas were unenthusiastic about the deal and sold the remaining stakes to Sivasankaran at an undisclosed amount.
With financial numbers hard to come by with this strong brand, it is quite a dilemma about how much investors are ready to pay for the purchase of the company. V. Srinivasan, CEO, said, “When we acquired it, Barista was a loss-making business. We have pumped in $15 million and the company now makes operating profits. Over the next couple of quarters, it will turn bottomline positive.”
Barista had recently announced its expansion to another 100 outlets over the next financial year. The sale of Barista has surfaced at a time when the final valuation will be based on brand, geographic spread, cash flows, profitability, management team and the strength of the supply chain.