Under a new franchise agreement, UK-based leisure company Whitbread and Indian company Devyani International will be opening at least 300 Costa stores in India.

The first site – in the National Capital Region – is due to open early next year.

India’s retail sector is currently predicted to see ten-fold growth by 2010, the result of a growing middle class increasingly interested in lifestyle and brands.

Devyani is run by Ravi Jaipuria who has previously been involved with multi-site management in India of brands such as Pizza Hut and Cream Bell.

Costa’s franchise and commercial director, Nick Williams, said: “Local concepts such as Barista and Café Coffee Day have proven that the Indian consumer has empathy with the concept of a branded coffee offering.

Costa currently operates more than 300 stores in the UK and 50 sites in the Middle East. Whitbread also plans to introduce the brand to Ireland and Cyprus over the next six months. Details: www.whitbread.com