Milan: Italy’s leading coffee roaster Lavazza plans to start up a coffee plant in India next year as part of its push to expand on growing coffee markets in India and the Asia Pacific region, the company said on Friday.
Lavazza, which operates in more than 90 countries, said it would invest about €20 million ($27.4 million) in the plant with initial capacity of about 1,000 tonnes of roasted coffee a year which could be raised by 40% in three years.
Lavazza, which bought India’s second-biggest coffee shop chain Barista Coffee Company and Indian coffee vending company Fresh & Honest Cafe in 2007, expects India to become its No. 2 market after Italy in the future, its deputy chairman Giuseppe Lavazza said in a statement. The plant will be built in Sri city in Andhra Pradesh and is expected to start up by the middle of 2012 to produce roasted coffee in beans, capsules and ground coffee, Lavazza said.
It would supply the Indian market first and then the entire Asia Pacific region. Lavazza aims to use Indian green coffee for its new plant as much as possible to reduce costs and the environmental impact of operations.
The plant would employ more than 150 people.