Continental Coffee to double revenues, up production
Hyderabad: Established in 1994 on a modest scale with just one coffee blend, one factory in AP, and exporting to just one country, Continental Coffee Limited (CCL) today has over 1,000 coffee blends, manufactured across four facilities (two in India and one each in Vietnam and Switzerland) to customers across 90 countries. With a current […]
Updated On - 22 February 2022, 07:49 PM
Hyderabad: Established in 1994 on a modest scale with just one coffee blend, one factory in AP, and exporting to just one country, Continental Coffee Limited (CCL) today has over 1,000 coffee blends, manufactured across four facilities (two in India and one each in Vietnam and Switzerland) to customers across 90 countries. With a current turnover of Rs 1,300 crore, the company aims to double it by 2025, Praveen Jaipuriar, CEO, Continental Coffee, tells Telangana Today in an interview.
Excerpts- Focus on innovation
CCL offers its own brands in the domestic market and in the last 36-42 months, the branded segment reached a milestone of Rs 100 crores. The multitude of the company’s offerings range across instant coffee, freeze dried, roast & ground, and premix. We are constantly innovating, whether it is in terms of blends, or creating or getting into new segments, such as freeze-dried coffee. We are the first Indian company to set up a freeze-dried plant in 2007.
Market presence
We are selling our products in most parts of the globe. We have got a very good presence in the US. We have got a strong foothold in other markets including Europe, Africa, Southeast Asia, and Australia. While markets such as Europe and the US are growing marginally at about 2-3 per cent, Africa, India, Southeast Asia continue to register double digit growth. In the next three years, we are looking at a CAGR of over 15 per cent, driven majorly by exports.
Household consumption
During Covid times, as people were at home, the at-home coffee consumption grew very well. People were drinking more tea and coffee during this time. As we are into making instant coffee, our home coffee demand did not see any slowdown. However, out-of-home consumption got impacted. There were challenges related to logistics worldwide and that has increased logistics costs and availability of containers have become an issue.
Southern India
Within India, 75-80 per cent of the sales come from South India, as it is the major coffee drinking region while the rest of India is largely tea drinking and coffee is just an occasional drink, and probably seen as a little more luxury. This year, we started expanding in north, east and west. So at least in the towns with over 10-lakh plus population, we started creating our distribution network and started supplying coffee.
Expanding manufacturing
We have four facilities with a combined capacity of 38,000 tonnes per annum, making us the second largest manufacturer globally. We are looking to expand capacity in Vietnam, by doubling it from the current 13,000 tonnes, within next one year. We are expecting an investment of $20 million (about Rs 150 crore) into this expansion. We will also be hiring more people at our facilities as well as for sales.
New technologies
We have developed a technology with integrated extraction systems that could give us the profile of a cold brew in an instant coffee. We are also trying to improve the profile of instant coffee and keep blending it so that we create novel products. We are also actively developing microground coffee.
Growth strategy
We will expand our presence and share in the existing core markets. We will get into sunrise markets such as Africa and increase our presence there. We will grow our domestic business and our own brand business. We will also get into markets such as Australia. All our growth plans will help us double our revenues in three years.
Now you can get handpicked stories from Telangana Today on Telegram everyday. Click the link to subscribe.
Click to follow Telangana Today Facebook page and Twitter .