CCL products to invest $ 20 mn this year to enhance manufacturing capacity of its 2 factories

CCL products to invest $ 20 mn this year to enhance manufacturing capacity of its 2 factories

Agency News

Hyderabad, Aug 13: The Rs 1100 crore Hyderabad-based instant coffee major CCL Products (India) Limited ( formerly Continental Coffee), world’s largest Private label Instant Coffee manufacturer will invest $ 20 million this year to enhance its manufacturing capacity of two factories located in Chittoor district of ( Andhra Pradesh) and Vietnam.

We will invest USD 12 million for enhancing the current capacity of 5,000 PMT to 10,000 PMT on agglomeration and packaging unit at SEZ in Kuvvakolli plant (Chittoor district of Andhra Pradesh) while USD 8 million will invest in Vietnam plant capacity enhancement from 10,000 PMT to 13,500 PMT, CCL Products (India) Limited Managing Director Challa Srishant said at a press conference here on Tuesday.

Currently, CCL has four state-of-the-art manufacturing plants –at Duggirala in Guntur district, SEZ at Kuvvakolli in Chittoor district ( both are in Andhra Pradesh), Daklak Province in Vietnam and Neuchatel Canton in Switzerland, he said the total combined capacity of these plants are 35,000 Tonne Per Annum (TPA) and in addition to this capacity, it can process another 15,000 TPA of premixes and R and G.

The Chittoor plant was recently commissioned, Mr Srishant said that all the units are debt free except for the new SEZ for which about Rs 350 crore was spent and the debt on account of this is about Rs 225 crore.

We will be debt free in the next three years, he informed and said that we have launched three products under instant Coffee, two brands in filter coffee while one branch under coffee Premix in the Indian market.

Worldwide CCL’s coffee is being consumed @ 1,000 cups per second, he claimed and said CCL exports its processed coffee to more than 90 countries and plans to reach a milestone of servicing 100 plus countries in the next 2-3 years.

The company which gets over 90 per cent of its revenues from exports, has roped in actress Nithya Menen as its brand ambassador to create a positive brand imagery in the Indian market.

The new campaign will break on mass media on August 15 and along with mass media campaign , CCL has been undertaking large scale sample coffee to consumers, said Challal Rajendra Prasad, Executive Chairman, CCL Products.

We are starting with Southern markets of India (AP, Telangana, Karnataka and Tamil Nadu), as almost 75 per cent of coffee consumption happens in this market, Mr Prasad said, adding CCL has plans to expand Pan India by 2021.

He said currently Indian business is contributing around 7 per cent of revenues which is targeted to improve to around 15 per cent in the next two years.

With additional capacity, niche products and further value additions, the company is expected to achieve a CAGR of 15-20 per cent, Mr Prasad informed.

CCL has a network of approximately 600 distributors and covers more than 50,000 outlets directly and by the year end, the target is to cover more than one lakh outlets, the Executive Chairman added.

Out of Rs 2,000 Crore total domestic market size in Instant coffee, 65 per cent was contributing by South while Rs 500 crore in market size in filter coffee segment, 95 per cent was contributing by south too and the Premix coffee segment was at a nascent stage, CCL CEO Praveen Jaipuriar said. (UNI)