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Brewing expansion: CCL products to spend USD 20 mn on capex in

Press Trust of India  |  Hyderabad 

CCL Products (India) Ltd (formerly Continental Coffee), world's Largest private label instant coffee manufacturer would be investing USD 20 million during the current fiscal to enhance capacities and infrastructure, a senior company official said on Tuesday here.

"We will be investing USD 20 million during this fiscal. USD 12 million will be spent on the on agglomeration and packaging unit in India ( Chittoor plant) and USD eight million in Vietnam plant capacity enhancement.

These are the two capex we are planning to do this financial year. All this (investments) is done through internal accruals," Srishant told reporters in a press conference.

The coffee maker has a combined state-of-the-art manufacturing capacity of 35,000 tonnes per annum located at Duggirala, Guntur district of Andhra Pradesh, Switzerland, Vietnam and recently commissioned a plant in Chittoor district.

All the units are debt-free except for the new SEZ for which about Rs 350 crores was spent and the debt on account of this is in about Rs 225 crores, he said.

"In the next three years we will be debt free," he added.

The company which gets over 90 per cent of its revenues from exports has roped in actress Nithya Menon as its brand ambassador for consumer packs in the Indian market.

The ad campaign would be staring from August 15.

"Starting with Southern markets of India ( AP, Telangana, Karnataka and Tamil Nadu), as almost 75 per cent of coffee consumption happens in this market, CCL has plans to expand to Pan India by 2021.

Currently, Indian business is contributing around 7 per cent of the revenues, which is targeted to be improved to around 15 per cent in the next two years," the CCL executive said.

With additional capacity, niche products and further value additions, the company is expected to achieve a CAGR of 15-20 per cent, he added.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, August 13 2019. 14:55 IST