Lavazza upbeat on India becoming 2nd largest coffee consumer

Italy's leading coffee retailer Lavazza today said it is upbeat on the Indian market and feels the country is all set to become the second-largest coffee consumer by 2015.

The coffee roaster, that runs around 175 coffee shops in two formats -- Barista Espresso and Barista Creme -- is also planning to invest substantially in doubling its outlets and setting up a manufacturing unit.

"The coffee market is still at a very nascent stage in India with most of the consumption happening in South India. However, with several players coming in, the consumption is all set to grow rapidly in the next three years.

 

The competition is healthy and will help grow the market," Lavazza Director (Asia & Pacific) Attilio Capuano told PTI here.

Lavazza is currently the leading player in the segment with a 48% market share globally and around 15% share in India. It is the second-largest coffee retailer in India after Coffee Cafe Day (CCD).

On revenues, Capuano said that the Indian market contributes around 3% to global revenues at around Rs 180 crore but would increase by 25% in the next few years. The company has so far invested close to $100 million in the country.

Without mentioning further investment details, Capuano said that the company's new plant in Andhra Pradesh will get operational next year.

The initial capacity of the plant would be around 1,100 tonnes of roasted coffee a year.