Eltex forms JV with German, Italian firms
Coimbatore-based Eltex Group today announced a Joint Venture with Mahlkonig GmbH, Germany, and CMA SpA of Italy for marketing and servicing in India of coffee machines for grinding and brewing.The three companies hold 33.3 per cent state each in the JV, named Kaapi Machines (India) Private Limited, which has targeted sales of Rs 25 crore in three years, the USD 20 million Group's Managing Director Suresh Jagannathan said here.
The JV would initially focus on traditional coffee markets of South India and later seek to market the products in the North, from Mahlkonig and Astoria and San Marino brands of espresso machines from the Italian firm, Jagannathan said.
"Our attempt is to offer the retailer world-class equipment under one roof thereby obviating the necessity of going to multiple importers, suppliers and vendors and executing numerous servicing and maintenance contracts", he said.
Mahlkonig's General Manager Nils Erichsen said once the Joint Venture company "builds" the market in India, "manufacturing (of machines in India) could be the next step".The annual domestic consumption of coffee in India is estimated to be 80,000 tonnes.
