Date:13/01/2007 URL: http://www.thehindubusinessline.com/2007/01/13/stories/2007011301610500.htm

Back Crustum Products plans 40 BreadTalk outlets by 2010

M. Somasekhar

In talks with developers to locate stores in popular malls

The typical investment in each of the boutique would be around Rs 70 lakh and an average of 125 products would be on offer.

Hyderabad , Jan. 12

Hyderabad-based Crustum Products Private Ltd, which brought BreadTalk, an exclusive boutique bread chain with the first store in Mumbai, plans to open a total of 40 outlets across the country by 2010.

The company plans to locate the outlets in popular malls and it is in talks with leading infrastructure developers such as DLF, Omax, Unitech, Prestige Group and GVK Group to tie-up for locations, according to Mr P. Chakradhar Reddy, Managing Director of the company.

BreadTalk is a popular chain based out of Singapore. It has nearly 100 boutique bakeries worldwide, and predominantly in Asian countries. It offers about 400 varieties of breads and cakes with names and personalities that echo fun, and are contemporary and catchy.

For India, Crustum — which is part of the Viceroy Group of hospitality & hotels — has a 10-year agreement from 2005 with the mandate of establishing the BreadTalk bakery chain. "We plan to launch 5 new stores in the next six months. All these would be in Mumbai. Typically each outlet would have 800-1,200 sq ft," Mr Chakradhar Reddy told Business Line here.

In Hyderabad, the company has tied up with GVK One — one of the biggest malls from the diversified GVK Group. Similarly, in New Delhi, the first outlet is expected in May 2007, he said.

Impulse Buying

The typical investment in each of the boutique would be around Rs 70 lakh. An average of 125 products would be on offer. The food and beverage experience of the Viceroy Group brings strength to the BreadTalk venture, Mr Reddy said.

"Our strength is food and their strength is bread. We import flour from Singapore and Japan. Indian foods are fused with breads to provide desi flavour to the varieties as well," he said.

The baked at sight products and the tasteful ambience created in the boutique outlets make for impulse buying.

Hence, on offer would be `Eat there types' as well as `Take aways', Mr Ravi Krishnan, Vice-President of Viceroy Hotels, explained.