CCL Products To Spend $20 Million On Capex In Current Fiscal
CCL Products (India) Ltd. (formerly Continental Coffee), world's largest private label instant coffee manufacturer, would be investing $20 million during the current fiscal to enhance capacities and infrastructure, a senior company official said on Tuesday.
"We will be investing $20 million during this fiscal. $12 million will be spent on the on agglomeration and packaging unit in India (Chittoor plant) and $8 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 special economic zone for, which about Rs 350 crore 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 percent 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 Aug. 15.
"Starting with Southern markets of India (AP, Telangana, Karnataka and Tamil Nadu), as almost 75 percent of coffee consumption happens in this market, CCL has plans to expand to Pan India by 2021. Currently, Indian business is contributing around 7 percent of the revenues, which is targeted to be improved to around 15 percent 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 compound annual growth rate of 15-20 percent, he added.