Ril, Chimayo Split Over Qwiky's

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http://economictimes.indiatimes.com/articleshow/856560.cms

NEW DELHI: The Reliance Group’s plans to have two coffee parlour brands, Java Green and Qwiky’s, under the Reliance Infocomm banner have come a cropper. Reliance and Qwiky’s owner Chimayo Chains have decided to separate as they could not agree on Qwiky’s valuation.

Chimayo Chains promoter Shashi Chimala, who was hired by Reliance Infocomm to help build the Java Green brand almost two years ago, has quit the company to independently grow his coffee parlour, Qwiky’s.

However, Reliance Infocomm will retain its minority stake in Qwiky’s as of now. Reliance had picked up a strategic stake in Chimala’s company to harness the coffee retailer’s experience and knowledge and to establish a long-term relationship with Qwiky’s.

Despite repeated attempts, the Reliance Infocomm spokesperson was unavailable for comment on the development.

When contacted, Shashi Chimala said, “I have decided to concentrate on Qwiky’s and grow the brand independently. As Reliance’s Java Green has a strong professional team in place, I have decided to go back to my original plan of growing the Qwiky’s brand aggressively.

The coffee pub culture is in its infancy and there is room for every player.” Mr Chimala declined to comment on the proposed takeover of Qwiky's by Reliance. However, a top Reliance official had earlier told ET that the Ambani family was interested in Qwiky’s and a family member was in talks with the company management for a possible takeover.

The Reliance group forayed into coffee retailing by launching a coffee brand called Java Green, which is now sold through 90 Reliance Web World stores. The company has now finalised plans to set up independent Java Green coffee outlets, which is being spearheaded by the late Dhirubhai Ambani’s daughter Nina and son-in-law Shyam Kothari.

Qwiky’s, on the other hand, has opted for the franchisee route to expand itself. It has 22 company-owned outlets concentrated in southern India.

It plans to expand in India and the Middle-East. It is also scouting for foreign and NRI funding.

Sources said had Reliance acquired Qwiky’s, it would have had two coffee chains under one umbrella, each with a different value proposition like Starbucks.