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Coffee Day, Coca-Cola top bids for kiosks at Railway stations

Coffee Day, Coca-Cola top bids for kiosks at Railway stations

Author | Source: Business Line | Monday, Jan 01,2007 9:21 AM

Coffee Day, Coca-Cola top bids for kiosks at Railway stations

Surya Food and Agro Ltd, the makers of Priyagold biscuits, and Nestle India Ltd recently won bids for setting up kiosks at several railway stations under the Central Railway, including Nagpur and Bhusawal divisions.

As on date, bids have been firmed up for setting up about 287 kiosks in various stations of the Southern Railway, South Western Railway, Western Railway, Central Railway, North Eastern Railway, North Central Railway and Northern Railway. Out of those, 90 kiosks have already been commissioned.

The 287 bids have been awarded to Amalgamated Beans Coffee Trading Ltd (ABCTL), Hindustan Lever Ltd, Hindustan Coca-Cola Beverages Pvt Ltd, Fresh and Honest Café Ltd apart from Surya Food and Agro and Nestle India, Dr P.K. Goel, Managing Director, Indian Railway Catering and Tourism Corporation (IRCTC), told Business Line.

ABCTL, which owns the Café Coffee Day chain, has won the maximum bids in the lot and would be putting up 121 kiosks. Coca-Cola has bagged the bids for putting up 61 kiosks, followed by Fresh and Honest (49), Hindustan Lever (26), Nestle (15), and Surya Food and Agro (15).

IRCTC would be getting an average of about Rs 2 lakh per kiosk per year set up in a railway station.

Bids are invited from the members of an open panel where all major food and beverages players are enlisted.

The members of the panel include Bikanerwala, Devyani Private Ltd (Pizza Hut), Rasna, Mapro Foods Pvt Ltd, Dabur, Pepsi, Lakshmi Brooke Coffee Hosts and Glaxo, amongst others. Other companies that are in the process of getting empanelled include Haldiram, Mongini's, Rambagh Hatcheries and Universal Dairy.

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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