FHCL to set up coffee capsules production unit in India

"Talks are on for setting up a production unit in the next two years. We plan to set it up in either Tamil Nadu or Andhra Pradesh," FHCL's CEO R Shivashankar told PTI here.
He, however, did not divulge the quantum of investment the company was proposing to make.

"The production unit will manufacture coffee capsules as well as capsule-vending machines called Best Lavazza Ultimate Espresso (BLUE machines)," Shivashankar said, adding, at present both are imported from Italy and Switzerland.

FCHL and Indian coffee-chain, Barista, were acquired by Italian coffee roaster Lavazza, in 2007 for Rs 480 crore from Chennai-based C Sivasankaran's Sterling Group.
FHCL, which is the only supplier of the coffee capsules in India at present, had launched the product a year back, catering to big firms and five-star hotels.
However, the company has formally reintroduced the product now and it will soon hit the market and cater to every segment in the hospitality sector, Lavazza's Brand Integration Manager Tanmoy Mukherjee, said.

The capsules, priced at Rs 20-25, will enable coffee- drinkers in the country get authentic espresso.
FHCL also has its presence in the retail sector with its coffee brands 'Alive' and `Lavazza Club'. The latter was launched last year.
FHCL, which clocked a turnover of Rs 100 crore last fiscal, is targeting a Rs 150-crore turnover in FY 10, Shivashankar said.