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Private Sector | Not Classified - india | PID: 197556
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As it began to build its own consumer brand, Continental Coffee (CCL Products India) has launched a $20-million expansion plan to increase the processing capacity to 50,000 tonnes from the present level of 35,000 tonnes
The 26-year-old firm, which makes over 1,000 coffee blends for different coffee brands in the world, is planning to go aggressively both in the bulk sales and the own brand business
The company had made several attempts to build its own brand through its journey but didn’t make much headway. But we have been making a concerted effort in the last four years,” Praveen Jaipuriar, Chief Executive Officer of Continental Coffee, told Business Line
sales of our own brand has crossed the ?100-crore mark. We are targeting to double it in the next 2-3 years
The Hyderabad-based listed company has roped in South Indian actress Nitya Menon and playback singer P Susheela to promote the brand
Unlike the tea market, the coffee market is largely an organised market. Pegged at about ?3,300 crore, the coffee market is dominated by the instant coffee segment with a size of ?2,000-2,200 crore. While the filter coffee segment stands at ?500 crore, out-of-home market coffee consumption is put at ?500-600 crore
The coffee market is largely focussed in the South and in urban areas. After covering the Southern market, we will tap all the metros and cities with a population of 10 lakhs and above
The firm has four facilities– three processing plants at Duggirala and Chittoor in Andhra Pradesh and one in Vietnam, and a packaging facility in Switzerland
At present, we have a capacity of 20-22,000 tonnes in India and about 13,000 tonnes in Vietnam. We are going to add about 13,000 tonnes in Vietnam
The firm said the capacity expansion would be completed by the end of the calendar year
Asked whether promotion of its own brand would cut into the sales of its bulk consumers, Praveen said that the company would tread with caution and ensure it won’t impact the business of its customers. “There will be no product clash with our large customers
The firm reported a consolidated total income of ?423 crore in the third quarter ended December 31, 2021, as against ?300 crore in the comparable quarter previous year. For the financial year 2020-21, it registered a total income of ?1,245 crore
| Updated on: 11 - Feb - 2022
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