Feasibility Studies
Specialty Café & Green Coffee Venture
F&B — Specialty Coffee / Café Venture (Proposed) · Gujarat (Vapi) · Strategic Feasibility — Sourcing & Economics
Client
Industrialist Promoter — Corrugated Packaging Sector, Vapi
Scope
Green Coffee Sourcing Economics, Market Positioning, Go/No-Go
Geography
India — Gujarat (Primary Market)
The Challenge
A Vapi-based industrialist with a manufacturing background in corrugated packaging wanted to evaluate entry into the specialty coffee and café space. Before committing capital, they needed clarity on sourcing economics, the landed cost reality of imported versus domestic green coffee, a viable business model, and an honest go/no-go recommendation.
What SBC Did
SBC conducted a strategic feasibility assessment covering the full green coffee sourcing landscape. Primary and secondary research mapped global FOB prices across origins (Ethiopia, Kenya, Colombia, Tanzania, Brazil), Indian import duty structure under HS Code 0901.11, and domestic farmgate pricing across Karnataka, Kerala, Tamil Nadu, and Andhra Pradesh. Landed cost scenarios were modelled across sea FCL, sea LCL, and air freight. The study benchmarked Indian D2C coffee brands (Blue Tokai, Subko, CoffeeVerse) and global luxury models (Bacha Coffee, %Arabica, Nespresso) to identify viable positioning.
Key Findings
- Import Reality — India's effective import duty burden is ~210–220% of CIF value. Best-case landed cost for imported green coffee: ₹880–1,200/kg — 3x domestic Arabica.
- Domestic Advantage — Indian Arabica: ₹250–340/kg farmgate. Domestic sourcing delivers a 50–65% structural cost advantage before roasting.
- Recommended Sourcing — 80–90% domestic (blends & core SKUs) + 10–20% imported (premium single-origin, limited edition only).
- Import Viability Rule — Proceed with imports only if landed cost exceeds ₹1,000/kg AND the product can sell at ₹400–500/kg roasted wholesale or above.
Key Findings
~0–220%
Import Duty (CIF)
0–65%
Domestic Cost Advantage
0–90%
Recommended Domestic Sourcing
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