Business Daily from THE HINDU group of publications
Tuesday, Aug 01, 2006
Industry & Economy - Beverages
Marketing - Retailing
On a new platform
The firms have bagged the projects for providing vending machines at 245 sites.
IRCTC will mop up an average of Rs 2 lakh per site every year.
New Delhi , July 31
Railway stations will soon have dispensing kiosks serviced by Café Coffee Day, Coca Cola, Fresh & Honest Café and HLL. These four firms have bagged the projects for providing vending machines at 245 sites.
The sites are spread over stations in Uttar Pradesh, Delhi, Maharashtra, Tamil Nadu, Karnataka and some parts of Andhra Pradesh.
Indian Railways Catering and Tourism Corporation Ltd (IRCTC) will be mopping up an average of Rs 2 lakh per site every year, said sources. The move will help IRCTC earn about Rs 5 crore annually from these dispensing kiosks.
These were the first lot of sites that were given out through a bidding process. IRCTC had invited bids from all major retail and beverage companies having automatic vending machine operations, which are members of an open panel. The panel also included Amul, Nestle, Tata Tea, Rasna, Pepsi and Dabur.
"The first lot of sites consisted of high footfall and high density stations," said sources, adding that the next lot may not fetch higher revenues.
Amalgamated Bean Coffee Trading Company Ltd (owner of Café Coffee Day), Fresh & Honest Café Ltd (a Sterling Infotech Group firm) and HLL have bagged about 122 sites in the southern region and will come up with kiosks at places, including Chennai main and suburban areas, Bangalore and Ernakulam.
"We are trying to get the kiosks up at stations within a month," said sources. Other stations that will see kiosks coming up in this lot include Mysore, Vijayawada, Mumbai, Allahabad, Varanasi and Kanpur.
For bidding, the Indian Railways' subsidiary had grouped several kiosks, which are present in one or at various closely located railway stations, into clusters. Each cluster consisted of about 19-25 kiosks.
It had also fixed a minimum licence fee per annum per kiosk and the licence fee varied depending on the size and location of the kiosk. Interested operators were required to competitively bid for running all the vending kiosks in a cluster.
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