In this video- i chat with Nithyanand, the Head and Director of Dark Forest Furniture Company, a leader in the Cafe Coffee Day Group, and discuss his efforts to create one of the largest furniture plants in India.
Coffee Day group is already strongly backward integrated, with the Coffee for the chain being sourced from the group's own plantations, they are the largest producers of Arabica coffee in Asia .
For Cafe Coffee Day, furniture costs are ~ 30% of the Capex in a typical Cafe, hence there is significant savings to be made by backward integration. They are able to save 30-50% of the cost as compared to furniture they used to import from China/ Malaysia, and of course, they are able to customise their production to suit their specific requirements.
But the idea is to think bigger than just supplying to Coffee Day. They have significant timber assets already owing to their plantations, and they have also acquired significant forest land at Guyana and made scale investments into the furniture factory in Chikmaglur, near Bangalore in India. They intend to to move beyond into the retail space, and more ambitious plans are afoot, where they plan to compete with the global majors...
This is also about Nithyanand's journey- he used to lead Way2Wealth, a financial services company in the group, and found his passion in design and furniture.