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Cane Crush does roaring sales, slates expansion to 50 outlets
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Wednesday, 17 June, 2009, 08 : 00 AM [IST]
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MV Chandrashekar, Bangalore
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Cane Crush, a sugarcane beverage major in the country, is now gearing up for expansion in outlets from the current 28 to 50. The decision to increase its footprint follows the growing demand for the juice.
This company started in April 2008 has 8 company owned outlets and the remaining function on a franchisee format at an investment of around Rs 6 lakh per centre.
The sugar cane juice vending outlets which are studded with unorganised players have seen five major players entering the space including Cane Fresh, Kabbu, Cane'o La and Health Magic Natural Foods.
Cane Crush is headed by Yateesh Kumar. The emphasis of the company is to have a brand identity of its own. The expansion will create an impact among customers. Around 75 per cent of the customers constitute families, which thronged on weekends with the remaining being working professionals and students during the week days.
There is a confidence on the hygienic practices adhered to at the outlets, K N Nithin, assistant manager, Cane Crush, told F&B News.
The company has a tie-up with 50 farmers in Mandya which is the leading sugarcane growing district in Karnataka. The company has a godown to store 50 tonnes of produce. After it is cleaned it is preserved in a deep freezer which has a capacity of 5 tonnes.
The reason for growth in the sugar cane outlets is the growing awareness on the therapeutic benefits of the drink in all seasons. It is a natural energy drink that is natural and recommended for convalescing cases..
The outlets have imported machinery from Taiwan at a cost of Rs 1.5 lakh. Around 800 cups can be produced in 12 hours. From one kilogram of cane only 2 glasses of juice is produced. In order to create a novelty of the product, 8 flavours including lime, ginger, chaat masala, pepper, salt, and mint are offered. A new introduction is the tender coconut water with green chilli and sugarcane juice. This offering has caught on recently. Sales at the outlet range from 500 to 600 cups a day.
While it is well-known in Bangalore and parts of Karnataka, like Hospet, Bellary, Hubli and Dharwad, plans are being chalked out to open centres at Chennai and Mumbai by the end of the year. The cost of setting up the outlets on an area spanning an area of 1000 sq.ft. outside the state will entail an investment of Rs. 20 lakh for which 50 per cent will be chipped in by the Cane Crush. The outlets also offer 20 types of dosas.
Future plans include launching juices from berries. Research is on at Karwar for the development of these health drinks. Efforts are also on to grow organic sugarcane for which it is identifying farmers, said Nithin.
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