Continental Coffee Limited (CCL Products) plans to invest $20 million to expand capacity of its Vietnam plant and set up an agglomeration and packing facility in India during the current financial year.
While the capacity of Vietnam plant will be enhanced from 10,000 tonnes to 13,500 tonnes per annum, the agglomeration and packing unit to come up at Chittoor in Andhra Pradesh will have a capacity of 5,000 tonnes.
Challa Rajendra Prasad, Executive Chairman, CCL Products, told reporters here on Tuesday that the investment will be made from internal accruals during the current financial year while operations would begin next year.
The company, listed on Bombay Stock Exchange and National Stock Exchange, is also looking at 15-20% growth in its top line during 2019-20. It had a turnover of ₹1,100 crore last year.
CCL, claimed to be the world's largest private label instant coffee manufacturer, exports its processed coffee to about 90 countries and currently has a capacity of 50,000 tonnes per annum at four plants -- two in India and two abroad.
The company offers over 100 products in 1,000 blends and it claims customization as its Unique Selling Proposition (USP).
CCL plans to focus on India as the domestic coffee market is growing with new processing technology, increasing demand and affordability. The instant coffee market in India is estimated at ₹2,000 crore, growing at 8-10 per cent Compound Annual Growth Rate (CAGR) for last three years.
Praveen Jaipuriar, CEO, CCL Products, said though premix coffee was at nascent stage, they believe this segment would be the future of coffee in India. To cater to this segment, CCL launched premix coffee under the brand Continental THIS, priced at just ₹10 for one cup.
This story has been published from a wire agency feed without modifications to the text.