CCL to spend USD 20 mn on India, Vietnam expansion

CCL Products (India) Ltd world’s largest private-label instant coffee manufacturer would be investing USD 20 million this fiscal, on expansion. Out of this, USD 12 million will be spent on the on agglomeration and packaging unit in India ( Kuvvakolli, Chittoor) and USD 8 million in Vietnam plant capacity enhancement.

Addressing a press conference here on Tuesday, C Srishant, Managing Director of CCL said that the expansion is taken up looking the demand for the production capacity at the Vietnam plant will be taken up from 10,000 ton per annum to 13500, ton this financial year.

“Starting from the southern markets as almost 75% of the coffee consumption happens in this market, CCL has plans to expand pan India by 2021. Currently Indian business is contributing around 7% of the revenues which is targeted to improve to around 15% in the next two years. With the additional capacity, niche products and further value additions, the company is expected to achieve a compound annual growth rate of 15-20 per cent,” Srishant said.

The coffee maker which is launching Continental Coffee in the Indian market has a combined state-of-the-art manufacturing capacity of 35,000 tonnes per annum. The units are located at Duggirala, Guntur district of Andhra Pradesh, Switzerland, Vietnam and the one in Chittoor district. The company has roped in actress Nithya Menon as its brand ambassador for consumer packs in the Indian market. The campaign will begin on 15 August.

As a prelude, the CCL has begun offering wet sampling of over one lakh cups of its coffee to consumers. CCL has a network of 600 distributors covering more than 50,000 outlets. By the end of this year, CCL wishes to cover 1 lakh outlets.