Oriental Kopi (KLSE:KOPI) plans to expand its operations overseas into Mauritius and Indonesia, according to a Thursday filing to the Malaysian stock exchange.
The company's subsidiary, Oriental Coffee International, has entered into a territory franchise agreement with Coffee Time for exclusive franchise rights to develop and operate a restaurant business under the trade name of Oriental Kopi within Mauritius.
Under the six-year franchise agreement, Coffee Time will pay franchise fees and monthly royalties to Oriental Kopi for each restaurant it operates, with the first outlet required to start business within 300 days.
For Indonesia, the company will enter the market through a joint venture with Era Boga Nusantara to develop and operate Oriental Kopi restaurants in the country.
Under the pact, Oriental Coffee International will invest $480,000 for a 40% stake in the joint venture, Era Oriental Kopi, while the Indonesian partner will hold the remaining 60%.
The new joint venture will focus on opening restaurants across Indonesia, with a focus on Jakarta while excluding Medan and airport locations. The first outlet in Indonesia is scheduled to start within a year.