India’s Largest Coffee Chain CCD Files for $1 Billion IPO

When you walk past a row of roadside tea stalls in Mumbai or Delhi, it’s easy to assume India runs entirely on chai. But beneath the steam of milk tea lies a quietly growing coffee culture — one now backed by big business. The country’s largest coffee chain, CafeCoffee Day (CCD), is preparing to go public with an expected valuation of around $1 billion, backed by a network of 1,650 stores across India.

In short: India’s biggest coffee retailer, CafeCoffee Day, is filing for an IPO at a $1 billion valuation. With 1,650 locations — more than triple the number of its competitors combined — CCD shows how coffee is carving out a serious niche in a nation long defined by tea.

A Nation Built on Tea

For nearly 200 years, tea has been India’s everyday drink. Driven by religious and cultural norms — particularly in Hinduism and Islam, which discourage alcohol — tea became the default beverage. India is the world’s largest tea producer, harvesting over 80,000 metric tons annually, mostly black tea. The country’s two most famous tea regions, Darjeeling and Assam, supply globally recognised blends. Around 70% of India’s tea is consumed domestically, with per capita consumption reaching 750 grams per year. Street-side tea stalls remain a defining part of both urban and rural life.

India’s Overlooked Coffee Heritage

Though less known, India is also one of the world’s largest coffee producers. Key growing regions include Karnataka, Kerala, and Tamil Nadu in the south. Yet most of this coffee is exported — often without local farmers even recognising it as coffee. 'Many farmers don’t know they grow coffee,' said 34-year-old Ross, founder of TheIndianBean.com, speaking to the Los Angeles Times. 'They think it’s just another crop for export.' During the pre-1991 economic era, coffee was sold to the government and shipped to the Soviet Union in exchange for imports like weapons. Today, much of India’s coffee is sent abroad, where it’s processed into branded retail products at much higher prices.

The Rise of Coffee Culture

India’s per capita coffee consumption is still low — just 0.25 pounds (about 113 grams) per person annually, compared to 9 pounds (4.08 kg) in the United States. But that figure has nearly tripled in the last decade. As urbanisation accelerates and a new middle class emerges, coffee is becoming a symbol of modern, cosmopolitan lifestyles. Once seen as an expensive foreign drink, coffee now appeals to young, urban Indians seeking a taste of Western culture. In 2012, Starbucks opened its first Indian store in Mumbai, pricing a 12-ounce cappuccino at just over $2. By then, homegrown chains like CafeCoffee Day, Seattle’s Best Coffee, and others had already spread to cities nationwide. 'I used to drink tea every day, but once coffee shops opened, I switched,' said 29-year-old Mumbai resident Yuvenson Duarte.

Government Support and Market Growth

Promoting domestic coffee consumption is now part of India’s economic strategy. According to the Coffee Board of India, coffee shops numbered around 1,950 in recent years, with projections estimating growth to 2,900 by 2017. The retail consultancy Technopak Advisors forecasts the coffee market will expand from $230 million to $410 million in the same period. John Culver, president of Starbucks Asia Pacific, noted, 'Given India’s economic scale, the growth of café culture, and rising disposable incomes, India is poised to be a very large market in the long term.'

Frequently Asked Questions

What is CafeCoffee Day?

CafeCoffee Day (CCD) is India’s largest coffee chain, operating 1,650 locations across the country. It offers a range of coffee drinks and snacks in a café-style setting and is a major player in promoting on-premise coffee consumption in India.

How big is the coffee market in India?

As of the early 2010s, India’s coffee market was valued at approximately $230 million, with projections to reach $410 million by 2017. The number of coffee shops was expected to grow from 1,950 to 2,900 in the same timeframe.

Why is tea more popular than coffee in India?

Tea has been the dominant drink in India for nearly 200 years due to religious and cultural factors, especially among Hindu and Muslim populations where alcohol is discouraged. Tea is also deeply embedded in daily life, supported by widespread availability through roadside stalls and domestic production.

Is coffee production significant in India?

Yes, India is one of the world’s largest coffee producers, with major growing regions in Karnataka, Kerala, and Tamil Nadu. However, most of the coffee is exported, and domestic consumption has only recently begun to rise significantly.

What caused the growth in Indian coffee drinking?

Urbanisation, a rising middle class, and the influence of Western lifestyles have made coffee more popular, especially among younger Indians. Coffee is now seen as fashionable and associated with modern, cosmopolitan identity.

What is the per capita coffee consumption in India?

India’s per capita coffee consumption is about 0.25 pounds (113 grams) per year, a figure that has nearly tripled over the past decade. For comparison, the US per capita consumption is around 9 pounds (4.08 kg) annually.

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