Coffee Day Enterprises Ltd Management Discussions

I. OUTLOOK

Global Economic Outlook

The global economy is expected to experience moderate growth in 2025, with an estimated expansion of around 3.0%. This outlook reflects ongoing challenges including geopolitical uncertainties, fluctuating commodity prices, and evolving trade dynamics. Inflationary pressures are expected to gradually ease across many regions, allowing central banks to cautiously adjust monetary policies.

Emerging markets and developing economies are projected to outperform the global average, anchored by robust growth in countries like India, which continues to be one of the fastest-growing major economies. However, inflation, supply chain disruptions, and climate-related risks remain significant challenges impacting various sectors.

Despite these headwinds, increased focus on sustainable development, technological innovation, and diversification of supply chains are expected to create new opportunities and build resilience. Businesses are advised to navigate this complex landscape with strategic agility to capitalize on growth prospects while managing risks effectively.

This global economic context shapes the operating environment for our company, influencing market demand, input costs, and investment priorities.

(Source: International Monetary Fund (IMF) and World Banks Global Economic Prospects)

Indian Economic Outlook

Indias economy is expected to sustain a robust growth trajectory in 2025, with GDP growth projected between 6.3% and 6.7% for the fiscal year 2025-26. This growth is supported by strong domestic demand, increasing private consumption, and continued government investment in infrastructure and capital expenditure. Inflation is expected to moderate, supported by stable oil prices and prudent monetary policy by the Reserve Bank of India, which has retained growth forecasts around 6.5%. The improvement in consumer confidence and purchasing power is likely to drive spending across key sectors including manufacturing, services, and agriculture.

India is projected to remain the fastest-growing major economy globally, buoyed by a young demographic, rising per capita income, and expanding export sectors such as pharmaceuticals, electronics, and engineering goods. However, risks persist from global trade uncertainties, geopolitical tensions, and the need to accelerate employment and skill development to ensure inclusive growth. Overall, Indias economic outlook for 2025 is positive, marked by steady growth, stable inflation, and enhanced global competitiveness as the country moves toward becoming a key global economic powerhouse.

(Source: Deloitte)

II. INDUSTRY STRUCTURE AND DEVELOPMENTS

a. Coffee Business: Market Analysis

The global level coffee market is analysed on the basis of segments such as source, type, process and region. Coffee is a brewed beverage made from roasted coffee beans, which are the fruit seeds of certain types of coffee. Grains are separated from the coffee berries to obtain a stable raw product, unroasted green coffee. The seeds are then roasted into a consumable product. Roasted coffee is crushed into small pieces, usually soaked in hot water, and then filtered to make a cup of coffee. Coffee is one of the largest agricultural products which is exported across the globe and supports millions of coffee plantations and coffee bean roasters.

Arabica and Robusta are two major types of plants used to make different sub-branches of coffee beans with different palette notes, flavors, and caffeine content. Caffeine is the most widely consumed psychotropic drug across the globe and some of its behavioral effects are similar to cocaine, amphetamines, and other stimulants.

Coffee prices reached a new record from the low levels experienced over the last three years. The major factor responsible for driving the coffee market is weather conditions in Brazil and covid-related disruption which have affected trade in the Asia Pacific region.

The rising trend of unique coffee blends is becoming more popular and great helps in coffee market growth. Coffee Stores and full-service restaurants are offering blends to improve gut health, boost metabolism and support the immune system. Mixtures such as matcha latte, mushroom coffee are on the rise and reduce fat with soy and collagen whiteners.

Demand for snap chilled coffee is surging across the globe and it is becoming a major trend in the market. Snap chilled coffee takes less time to make than a cold brew and does not require the addition of ice cubes to dilute the coffee. This extracts more flavors and more attractive aromas than the cold brew process. There is no wasted cold freshly brewed coffee. These trends are driving the demand for coffee market.

Coffee tourism is becoming a trending thing. Millennials often see coffee as an overall experience, so many young people seek coffee in popular growing areas. Coffee tourism is officially the next big thing, and millennials are looking for a more authentic experience in unique cafes around the globe. Millennials are also looking for stores that offer unique coffee presentations, fascinating photos of coffee farms, educational experiences, and more.

Butter coffee is becoming a popular trend-especially for those who dont have breakfast on the go. Butter coffee is coffee refined with a tablespoon of butter. Butter makes coffee more nutritious and more effective. Popular with celebrities and professional athletes, trends spread and become cults. This is also a simple improvement that allows retailers to significantly increase the price of a cup of coffee.

Health benefits of coffee such as reducing the risk of diabetes, fat burning, and high energy intake from caffeine spikes is increasing and the demand for coffee and the popularity of younger is increasing. The growth of local and global franchise coffee shops is driving the demand for a variety of coffee as customers are willing to pay for the high-quality coffee that has become a medium for socializing.

(Source: Steller)

Indian Coffee Market Trends:

The demographic landscape of coffee consumers has shifted dramatically.

While most adults drink coffee, Millennials and Gen Z drive innovation within the coffee market. These two generations, accounting for 52% of the global population, are crucial consumer bases.

Millennials and Gen Z are the most connected generations, with much of Gen Z never knowing a time without the internet. They are racially and ethnically diverse, exposed to various cultures and tastes, and show a strong preference for sustainable and ethically produced goods.

Crucially, Millennials and Gen Z prioritize convenience. While they enjoy beverages spanning a range of temperatures, brewing styles, and functionalities, they want products that are easy to purchase, prepare, and consume. This demand is fueling innovation across the industry, including growth in RTD and mix formats, and the rise of App-powered coffee ordering.

Emerging Markets: Caf? culture is growing rapidly, especially in non-drinking emerging markets where coffee is becoming a lifestyle choice.

Coffee rituals enhance the overall experience of coffee consumption. These rituals involve not only drinking coffee but also its preparation and presentation. Traditionally, rituals ranged from the Italian morning espresso to the methodical pour-over coffees favored in Japan.

However, modern shifts, driven by social media and rapid lifestyle changes, are transforming these rituals.

Todays coffee rituals focus on speed, convenience, and innovation, adapting to technological advancements and changing consumer preferences.

Opportunities

• Demand from new markets: Consumers in developing regions like Asia and Eastern Europe today have more disposable income and aspirations of more Westernized lifestyles. Coffee is seen as a major part of this lifestyle, thus offering significant scope for growth in traditionally tea-drinking emerging economies.

• Product innovation: Consumers – younger ones in particular – are always on the lookout for something new and innovative. Coffees versatility as a drink means that there is a lot of potential to experiment with new flavors, formats, brewing and roasting methods, and so on.

• Specialty coffees: Not only do consumers want something new, they also want something that helps them stand out from the crowd. This has allowed for the growth of specialty coffees, featuring cues like unique taste profiles and product provenance, among others.

• Functional benefits: Coffee has emerged as a health-positive drink – in moderation – with a slew of functional benefits that appeal to consumers. Energy and focus have always been linked to coffee, but now were seeing this expand to weight loss, performance enhancement, products fortified with different nutrients, and so on.

• Tech-driven distribution: Innovation doesnt just cover new products, but also new ways of reaching consumers. New technologies allow consumers to engage with coffee and coffee brands through numerous touchpoints – from apps to subscription services to at-home appliances. This allows for more tech- and data-driven personalized experiences.

• Sustainable offerings: Coffee may be plant-based, but it does not have the greatest sustainability credentials as it is one of the highest greenhouse gas emitting foods. Coffee production also comes with a fair share of ethical violations. Consumers are increasingly wanting the products they buy to be eco-friendly and ethical, opening up opportunities for brands that prove these claims.

Risks, Concerns, and Threats

Price fluctuations: As supply becomes more unpredictable, so will coffee prices, which have been hitting record highs over the past few years. Being unable to have stable supply and prices will impact budgeting and planning for companies.

Climate change: Coffee is sensitive to changes in weather patterns, like temperature and rainfall, which can have a significant impact on production. This in turn could impact global supply. As the weather continues to get more unseasonable and more unpredictable, the nature of coffee production itself could undergo a change.

(source : Gourmet Pro)

Market Segmentation

• Coffee is immensely popular with younger consumers who see it as trendy and refreshing as well as offering a range of benefits, including energy and focus. They have even started drinking coffee earlier than their older counterparts.

• It is a versatile drink, as it pairs well with a range of flavors, temperatures, and milk alternatives, making it suitable for different occasions and times of day.

• Countries that were historically not coffee drinking markets are seeing a surge in demand as consumers here take to coffee for its aspirational image and functional properties. Companies here are changing the face of coffee innovation as they tweak offerings to better suit the local requirements.

b. Hospitality Business

Indias hospitality sector has undergone significant transformation driven by favorable government policies and infrastructure development initiatives. The government has implemented several measures to boost investments, including allowing 100% FDI through the automatic route and offering five-year tax holidays for hotels located around UNESCO World Heritage sites. The Ministry has established the Hospitality Development and Promotion Board to streamline hotel project clearances and approvals. Additionally, the government has allocated INR 2 billion for developing tourist circuits at pilgrimage sites across the country, demonstrating its commitment to enhancing tourism infrastructure.

These initiatives have positioned India among the top 100 countries globally for ease of doing business, particularly in the hospitality sector in India. The industry is witnessing a fundamental shift in ownership and operational models, with franchise and lease arrangements gaining prominence over traditional owned-hotel structures. Hotel chains are increasingly adopting asset-light strategies, focusing on management contracts rather than property ownership to drive revenue growth. This transformation is particularly evident in the organized hotel industry, where the consumer internet market is concentrated in urban and affluent cities. The trend has led to hotel conversions nearly doubling, with domestic hotel chains showing greater flexibility in terms of hotel size and maintaining a 65:35 ratio over international brands in conversion rates.

Technology integration and personalization have become crucial differentiators in the hospitality sector in India. Data analytics and AI technologies are revolutionizing the supplier side of the hotel industry, enabling personalized recommendations and targeted promotions based on guest preferences and behavior patterns. Hotels are increasingly investing in digital solutions for everything from booking systems to guest experience management, with many properties introducing advanced features such as mobile check-in, digital room keys, and AI-powered concierge services.

This technological evolution has particularly benefited the online booking segment, with most reservations now originating from tier-1 and tier-2 cities. Consumer preferences have evolved significantly, with a growing emphasis on experiential travel and authentic local experiences. The tourism sector has emerged as a significant employment generator, currently accounting for 39 million jobs, representing 8% of the countrys total employment. Staycations have emerged as a prominent trend, with major hotel chains introducing specialized packages to cater to this growing demand. Properties are increasingly focusing on incorporating local cultural elements, sustainable practices, and unique experiences to differentiate their offerings. This shift has led to the development of various tourism themes, including nature, heritage, cultural, wellness, and MICE (Meetings, Incentives, Conferences, and Exhibitions) segments, each requiring specialized tourism and hospitality services and amenities.

(Source Mordor Intelligence)

Market Size

The Hospitality Industry In India Market size is estimated at USD 281.83 billion in 2025, and is expected to reach USD 541.70 billion by 2030, at a CAGR of 13.96% during the forecast period(2025-2030).

(Source Mordor Intelligence)

Government Initiatives

The Indian governments proactive approach in developing tourism infrastructure has become a significant driver for the hospitality industry. The governments ambitious plan to revitalize 50 additional airports, heliports, and water aerodromes is strengthening regional air connectivity, making previously underserved destinations more accessible to tourists. This infrastructure development is complemented by the comprehensive mission to develop fifty tourism destinations as complete packages for both domestic and international tourists, creating new opportunities for hotel establishments across various locations.

The implementation of innovative schemes and digital initiatives has further catalyzed industry growth. The revitalization of the Swadesh Darshan Scheme as Swadesh Darshan 2.0 (SD2.0) demonstrates the governments commitment to sustainable tourism development. Additionally, the introduction of NIDHI+, an upgraded version of the National Integrated Database of Hospitality Industry, has streamlined operations by incorporating various stakeholders including accommodation units, travel agents, tour operators, tourist transport operators, food and beverage units, and convention centers, significantly improving ease of doing business in the sector.

(Source Mordor Intelligence)

Indian Hospitality Industry Segmentation

The budget and economy hotels segment has emerged as the fastest-growing segment in the Indian hospitality market, projected to grow at approximately 6% annually through 2024-2029. This remarkable growth is primarily driven by increasing domestic tourism, rising middle-class travel aspirations, and the growing preference for affordable yet comfortable accommodations. The segment has witnessed significant technological adoption, with many properties implementing digital solutions for bookings and operations. The expansion is particularly notable in tier-2 and tier-3 cities, where there is a growing demand for standardized, no-frills accommodation options that offer essential amenities at competitive prices. This growth trajectory underscores the increasing budget hotel market size within the accommodation sector.

RISKS CONCERNS AND THREATS

Financial risk

If the Companys cash flow proves inadequate to meet its financial obligations, its status as a going concern might be invoked.

Competition risk

With growing westernization and increase in the penetration of global players and growing popularity of individual themed caf?s, it might be a challenge for the Company to maintain its existing consumer base.

Regulatory risks

Operating in the food industry space is subject to various regulatory risks with respect to failure of compliance to quality standards and various regulations imposed by the government policies. Failure to meet with the standards might result in legal implications and loss of business.

Climatic risks

Bad monsoon might result in lower production of coffee leading to soaring high coffee prices. Passing it to the customers would incur menu costs and loss in price sensitive segment of consumer base. Thus, inadequate monsoon might result in falling revenues and profit.

Economic risk

Sluggish growth of the economy impacts the spending power reducing consumption. Overall macroeconomic instability results in a lower demand. Thus fluctuations in the economic scenario possess a major risk to the business of the company. Performance of the backward and forward linked industries is of vital importance for the logistics sector to perform.

Social and political risk

Government policies play a major role in determining the fate of an industry. Relaxation of various regulations and simplification of tax regime give the much needed push to the concerned sectors. Change in orientation with change in government possesses a threat to the business. Managing the threats posed by a pandemic is critical for business survival. A business continuity plan can help you manage the impacts of a pandemic and meet your legal obligations to staff to ensure their safety.

Business continuity plan will detail businesss risk management strategy and business impact analysis. It will describe how business intends to respond to an incident, sets out a recovery plan and defines policies and procedures for managing staff and communication.

III. SEGMENT WISE PERFORMANCE COMPANYS FINANCIAL OVERVIEW Statement of Profit and Loss Analysis

Net Revenue

Net revenues increased by 6% to 1,078 Crores in FY 2024-25, compared with 1,013 Crores reported in FY 2023-24.

Operating Profit

Operating profit (EBITDA) for FY 24-25 stands at profit 223 Crores compared to loss of 208 Crores in FY 2023-24. Profit during FY 24-25 includes i. One time expense of Rs 11 crores was paid towards corporate guarantee obligation by

Tanglin Developments Limited(subsidiary) ii. The gain on loss of control on AC & C Hospitality Resorts LLP of 58.89 crores.

The loss during FY 23-24 is mainly due to i. 45.22 crores towards expenses incurred on behalf of the Tanglin Developments Limited(subsidiary) for non-satisfaction of certain CPs as agreed to in the sale agreement of Bangalore undertaking of Tanglin Developments Limited(subsidiary) ii. 50 crores was paid towards corporate guarantee obligation of Sical Logistics Limited by Tanglin Developments Limited(subsidiary) iii. Loss of 24 crores from the sale of Coffee Day Global Limited shares given as security by the Company to RBL Bank. iv. Impairment of goodwill amount of 359 crores.

Depreciation

Depreciation for the year under review stood at 125 Crores, compared with 131 Crores recorded in the previous year, down 5% on a y-o-y basis.

Finance costs

Finance cost for the year under review increased from 30 Crores to 110 Crores. Increase in finance cost mainly due to realignment results in reduction of debt as per the proposed restructuring plan in Coffee Day Global Limited and servicing of interest as per the proposed restructuring plan.

Net profit

Consolidated net loss for the year under review attributable to shareholders of the company stood at 58 Crores compared with loss of 323 Crores in the previous financial year. The loss during FY 23-24 is mainly due to

i. 45.22 crores towards expenses incurred on behalf of the Tanglin Developments Limited(subsidiary) for non-satisfaction of certain CPs as agreed to in the sale agreement of Bangalore undertaking of Tanglin Developments Limited(subsidiary)

ii. 50 crores was paid towards corporate guarantee obligation of Sical Logistics Limited by Tanglin Developments Limited(subsidiary)

iii. Loss of 24 crores from the sale of Coffee Day Global Limited shares given as security by the Company to RBL Bank.

iv. an amount of 359 crores on account of impairment of goodwill.

Balance Sheet Analysis

Net worth

The Companys net worth stood at 2,946 Crores as on 31 March, 2025, decreased by 6%, compared with 3,130 Crores as on 31 March, 2024. The net worth comprised of paid-up equity share capital amounting to 211.3 Crores as on 31 March, 2025 (211,251,719 equity shares of 10 each fully paid up) and Non-controlling interests of 355 Crores. The Companys reserves and surplus stood at 2,379 Crores as at 31 March, 2025.

Loan profile

As on 31 March, 2025 the total loan funds stood at 1,125 Crores which comprises of long-term borrowings of 201 Crores and short-term borrowings of 925 Crores and the Companys net debt stood at 836 Crores.

Liabilities

Non-current liabilities (excluding borrowings) stood at 209 Crores, comprising of lease liabilities 197 Crores, deferred tax liabilities 1 Crores, and provisions amounting to 11 Crores. Current liabilities (excluding current borrowings of 925 Crores) stood at 659 Crores, comprising of lease liabilities of 51 crores, other financial liabilities of 348 Crores, trade payables of 60 Crores, other current liabilities 25 Crores, current tax liabilities 142 Crores, provisions 20 Crores and liabilities associated with assets held for sale amounting to 9 crores.

Total assets

The Companys total assets decreased to 4,939 Crores in 2024-25 from 5,104 Crores in FY 2023-24, representing decrease of 3%. This decrease in total assets is mainly on account of remeasurement deferred tax balances using the revised tax rate of 132 crores.

Investments

The Companys investments (current and non-current) including equity accounted investees during the year under review increased to 79 Crores compared to 44 Crores in the previous year.

Increase of 80% over the previous year mainly due to loss of control of subsidiary AC & C Hospitality Resorts LLP and became an associate company.

Current and Non-Current Assets

Inventories increased by 13% to 37 Crores during the year under review from 33 Crores in FY 2023-24. Inventories comprise of raw material inventory of 28 Crores and Stores and spares of 9 crores. Trade receivables of the Company stood at 62 Crores in FY 2024-25. The Company had on its books cash and bank balances including deposits worth 244 Crores as on 31 March, 2025 as compared to 225 Crores in 31 March, 2024. The company had tax assets 301 Crores during the year under review. Total tax assets for FY 2024-25 comprise of deferred tax assets, (net) 298 Crores and current tax assets, (net) 3 Crores. Other financial assets stood at 1,079 Crores as compared to 1,108 Crores in the previous year.

Details of significant changes (i.e., change of 25% or more as compared to the immediately previous financial year) in the key financial ratios, along with detailed explanations thereof, including:

Sl. No. Particulars	2025	2024
1 Debtors turnover	8.36	8.04
2 Inventory turnover	20.92	18.85
3 Interest coverage ratio(refer note-1)	0.51	4.73
4 Current ratio	2.31	2.17
5 Debt equity ratio	0.47	0.44
6 Operating profit margin (%) (Refer note-2)	5.17%	13.85%
7 Net profit margin (%)	(13.28)%	(30.34)%
8 Return on Net Worth(%)	(4.71)%	(9.45)%

Note:

1. Interest Coverage Ratio decreased mainly due to decrease in operating revenue and Interest waiver given by the lenders till 31 December 2023

2. Operating Profit Margin decreased mainly due to decrease in operating revenue

3. Net Profit Margin and Return on net worth improved mainly due to the following exceptional items in FY 23-24 i. 45.22 crores towards expenses incurred on behalf of the Tanglin Developments Limited(subsidiary) for non-satisfaction of certain CPs as agreed to in the sale agreement of Bangalore undertaking of Tanglin Developments Limited(subsidiary) ii. 50 crores was paid towards corporate guarantee obligation of Sical Logistics Limited by Tanglin Developments Limited(subsidiary) iii. Loss of 24 crores from the sale of Coffee Day Global Limited shares given as security by the Company to RBL Bank. iv. an amount of 359 crores on account of impairment of goodwill.

There is no significant change (i.e. change of 25% or more as compared to the immediately previous financial year) in the key financial ratios except as mentioned above.

Operational Overview

Coffee Day Enterprises is present across the following sectors:

Coffee, hospitality and other operation. However, 96% of the consolidated net revenue of the Company was contributed by the coffee business during the year under review, followed by 4% from the hospitality and 0.0% from other operations.

Coffee Business

Gross Revenue from the Companys consolidated coffee business stood at 1,034 Crores in 2024-25, contributing 96% to the consolidated topline, representing a increase of 7% over 2023-24. Consolidated Loss Before Tax is 12 Crores for FY 2024-25 compared to loss of 369 Crores for Previous Year FY 2023-24.

Coffee Day Global Limiteds flagship caf? chain brand Caf? Coffee Day (CCD) owns 435 cafes in 152 cities and 247 CCD Value Express kiosks. There are 54,100 vending machines that dispense coffee in corporate workplaces and hotels under the brand.

Particulars	2021-22	2022-23	2023-24	2024-25
No. of cafes	495	469	450	422
No. of cities of presence	158	154	141	152
No. of CCD Value Express kiosks	285	268	265	247
No. of operational vending machines	38,810	48,788	52,581	54,100

Hospitality Business

The Company owns and operates luxury boutique resorts, one directly through our Company, and two through our subsidiaries, under the brand ‘The Serai. These resorts are located at Chikmagalur, Bandipur and Kabini, all in Karnataka. The Company also with management control holds equity interest in a luxury resort in the Andaman and Nicobar islands.

Revenue from our hospitality business decreased by 5% to 44 Crores in FY 2024-25 compared to

46 Crores in FY 2023-24. Decrease mainly due to loss control of subsidiary AC & C Hospitality Resorts LLP on 30 January 2025 which operates Chikmagalur and Bandipur resorts.

(Note: All information presented in Indian rupee has been rounded off to the nearest crore unless otherwise indicated.)

Internal Control Systems and Their Adequacy:

The Company has intended to increase transparency and accountability in an organizations process of designing and implementing a system of Internal Control. The framework requires a Company to identify and analyze risks and manage appropriate responses. The Company has successfully laid down the framework and ensured its effectiveness. The Companys Internal Controls are commensurate with its size and the nature of its operations. These have been designed to provide reasonable assurance with regard to recording and providing reliable financial and operational information, complying with applicable statutes, safeguarding assets from unauthorized use, executing transactions with proper authorization and ensuring compliance of Corporate Policies.

The Company has a well-defined delegation of power with authority limits for approving revenue as well as expenditure. Processes for formulating and reviewing annual and long term business plans have been laid down.

M/s. Venkatesh & Co, Chennai, the Statutory Auditors of the Company have audited the Financial Statements included in this Annual Report and have issued a report on the Internal Control over financial reporting (as defined in section 143 of the Companies Act, 2013).

The Company has appointed ABS & Co, Chartered Accountants to oversee and carry out Internal Audits. The Audit is based on an Internal Audit Plan, which is reviewed each year in consultation with the Audit Committee, the conduct of Internal Audit is oriented towards the review of Internal Controls and risks. Additionally, there has been a continued focus on IT enablement and computerization of key process controls through the Systems to maximize automated control transactions across key functions.

The Internal Audit function endeavors to make meaningful contributions to the Organizations overall governance, Risk Management and Internal Controls. The Audit Committee reviews reports submitted by Internal Auditors. Suggestions for improvement are considered and the Audit Committee follows up on corrective actions taken by the Management. The Audit Committee also meets the Companys Statutory Auditors to ascertain, inter alia, their views on the adequacy of Internal Control Systems and keeps the Board of Directors informed of its major observations periodically. Based on its evaluation (as provided under Section 177 of the Companies Act, 2013 and applicable clause of SEBI Listing Regulations), the Audit Committee has concluded that as of 31 March, 2025, the Internal Financial Controls were adequate and operating effectively.

Material Developments in Human Resources/ Industrial Relations Front And Number of People Employed:

At a Group level, we have built a reputation of being able to attract and retain key talent.

People & Culture

Our employees make a difference to our customers. Delivering customer promise across the Group is a critical component of our success. It therefore becomes imperative that our employees deliver the best-in-class service. We are very passionate and determined about being one of the best in the industry verticals we operate and are committed to be a leading employer in our space.

Recruitment

We have strengthened our entry level and middle management lateral hiring process across our businesses. We have a robust process to hire middle & senior management staff through need-based hiring. Our selection process has innovative "practical project" built in for senior level leadership hiring, so as to test their ability to lead a P&L or make change happen.

Training and Development

Building skills for entry level staff has been a significant effort, and we continue to work with skilling institutions / NGOs, our own Skilling centres as well with several state government skilling programs. At management level, we have our well established "Trainee" programs across businesses or direct induction at mid-levels through a well-designed induction program for lateral hires.

Some of our popular programs have included the "Sales Trainee" program at Vending business, OT / LDP program at CCD, Management Trainee program at Retail Logistics to name a few. We have also partnered with five other well-known companies and formed an "Exchange Consortium" and have offered Leadership Development / learning opportunities for our Senior Leaders. We also continue to invest and grow our diversity staff including the hearing challenged.

Compensation

Our employees across various business receive competitive salaries and benefits within the industries they operate. We have started introducing a "Variable Pay" program selectively so as to drive a Performance culture. The "Group Retention Policy Program" is selectively used to attract and retain key talent. Increasingly we will use sales incentive / performance bonus to drive a performance culture. There were no days lost due to any industrial strike or labour issues.

		For Coffee Day Enterprises Limited
	Sd/-	Sd/-
	Malavika Hegde	K R Mohan
	CEO & Whole-time Director	Independent Director
	DIN: 00136524	DIN: 01718628
Place: Bangalore
Date:29 May 2025