Continental Coffee plans $20 m expansion

As it began to create its have buyer model, Continental Espresso (CCL Products and solutions India) has released a $20-million enlargement system to improve the processing potential to 50,000 tonnes from the present amount of 35,000 tonnes.

The 26-12 months-previous firm, which helps make over 1,000 espresso blends for diverse espresso brands in the planet, is setting up to go aggressively both of those in the bulk product sales and the individual model company.

“The enterprise had manufactured many tries to develop its very own brand via its journey but didn’t make significantly headway. But we have been creating a concerted exertion in the past 4 decades,” Praveen Jaipuriar, Chief Executive Officer of Continental Espresso, advised Company Line.

“Now, revenue of our possess brand name has crossed the ₹100-crore mark. We are focusing on to double it in the following 2-3 decades,” he mentioned.

The Hyderabad-dependent listed enterprise has roped in South Indian actress Nitya Menon and playback singer P Susheela to advertise the brand.

Not like the tea current market, the coffee current market is largely an organised market. Pegged at about ₹3,300 crore, the coffee market is dominated by the instantaneous espresso segment with a measurement of ₹2,000-2,200 crore. Whilst the filter coffee phase stands at ₹500 crore, out-of-home market place espresso intake is put at ₹500-600 crore.

South, city phenomena

“The espresso sector is mostly focussed in the South and in city spots. Right after masking the Southern market place, we will faucet all the metros and metropolitan areas with a inhabitants of 10 lakhs and over,” he said.

The agency has four facilities– three processing vegetation at Duggirala and Chittoor in Andhra Pradesh and one in Vietnam, and a packaging facility in Switzerland.

“At existing, we have a ability of 20-22,000 tonnes in India and about 13,000 tonnes in Vietnam. We are likely to increase about 13,000 tonnes in Vietnam,” he claimed.

The organization explained the ability expansion would be finished by the close of the calendar year.

Requested whether marketing of its very own brand would minimize into the revenue of its bulk individuals, Praveen reported that the business would tread with warning and guarantee it won’t influence the organization of its shoppers. “There will be no product or service clash with our big buyers,” he reported.

The agency documented a consolidated complete cash flow of ₹423 crore in the third quarter finished December 31, 2021, as against ₹300 crore in the equivalent quarter preceding year. For the money yr 2020-21, it registered a whole income of ₹1,245 crore.

Released on

February 10, 2022