CCL Products (India) Ltd, formerly known as Continental Coffee Ltd, is set to establish a new manufacturing plant in the Tirupati district of Andhra Pradesh, India. The company plans to invest Rs 400 crore in this project, which will be located at Continental Coffee Park in Kuvvakolli village. Spanning across 22 acres of land, the plant will have an annual capacity of 16,000 metric tonnes and will focus on the production of spray-dried instant coffee.
During a press conference held on Tuesday, Challa Rajendra Prasad, the Founder and Chairman of CCL Products, announced that production at the new plant is scheduled to commence in the fourth quarter of the current financial year. The project’s funding will be primarily sourced from internal accruals, with a portion also secured through a term loan. The recent foundation-laying ceremony for the new plant was carried out by Andhra Pradesh Chief Minister YS Jagan Mohan Reddy, highlighting the government’s support for industrial development and job creation.
The establishment of this new manufacturing plant signifies a remarkable milestone for CCL Products, as it expands its production capacity and enhances its presence in the coffee industry. Over the past 28 years, the company has witnessed substantial growth, starting with a manufacturing setup of 3,000 tonnes per annum (TPA) and subsequently increasing its capacity to an impressive 55,000 TPA. Currently, CCL operates four manufacturing plants, with two located in India and one each in Vietnam and Switzerland.
The decision to set up the new plant in Andhra Pradesh demonstrates CCL’s commitment to leveraging the state’s conducive business environment and infrastructure. The strategic location offers various advantages, including access to quality raw materials and a skilled workforce. Additionally, the establishment of the plant in this region will contribute to the economic development of Andhra Pradesh by generating over 100 direct job opportunities.
The demand for instant coffee products has been steadily increasing in both domestic and international markets. By expanding its manufacturing capacity, CCL Products aims to capitalize on this growing demand and strengthen its market position. The new plant’s state-of-the-art facilities and advanced production techniques will enable the company to deliver high-quality instant coffee products to its customers worldwide.
At present, CCL Products shares are being traded at Rs 646.85 apiece on the Bombay Stock Exchange (BSE), reflecting positive investor sentiment and confidence in the company’s growth prospects. As CCL Products continues to innovate, expand, and meet the evolving consumer preferences in the coffee industry, it is poised for sustained success and further advancements in the years to come.
In conclusion, CCL Products’ decision to establish a new manufacturing plant in Andhra Pradesh with an investment of Rs 400 crore demonstrates the company’s commitment to growth and expansion. With its enhanced production capacity, CCL Products aims to meet the increasing demand for instant coffee products and solidify its position in the market. The new plant, scheduled to commence operations later this year, is expected to create job opportunities and contribute to the economic development of the region. As CCL Products continues its journey of success, it remains focused on delivering superior-quality coffee products and driving innovation in the industry.
