Hyd-based CCL Products turns into $1-bn entity now

Hyderabad Starting its journey with a small coffee processing unit at Duggirala in Andhra Pradesh and growing steadily thereafter for next 28 years, city-based CCL Products (India) Ltd has now become a billion-dollar company in market capitalization (mcap).

CLL Products (India) Ltd stock on Tuesday (June 27, 2023) rose Rs4.10 or 0.63 per cent to Rs651.50 on BSE, a net rise of 71.67 per cent from Rs379.50 on June 27, 2022. The stock tourched its 52-week high of Rs670 on June 20. The yearly share price rise took its mcap to Rs8,666.77 crore.

Founded in 1995 by ChallaRajendra Prasad, CCL Products is an Indian multinational, and is also the world’s largest private label coffee manufacturer with roots in Andhra Pradesh, India.

Formerly Continental Coffee Limited, CCL initially focused on coffee exports and contract manufacturing. Prasad identified the untapped potential of Indian-grown coffee being exported without value addition. To address this, he established an instant coffee plant, adding value by converting green coffee beans into high-quality instant coffee.

Speaking to the media on Tuesday, Challa Rajendra Prasad, Founder and Chairman, CCL Products India Ltd, said: “30 years ago when I saw that Indian coffee beans were being exported as raw materials, Ithought why shouldn’t we do the value addition in our own country and then export the finished products?This way, our country willearn more foreign exchange and, in the process, generate more employment as well. With this objective, I started Continental Coffee Ltd. and set up our first factory at Duggirala”.

Thereafter, CCL embarked on an aggressive capacity expansion. From 3,000tonnes per annum (TPA), the company expanded its capacity to 55,000TPAin the last 28 years. It now has four manufacturing plants, two in India and one each in Vietnam and Switzerland.

With the advantage of large-scale production and an extensive marketing network, CCL has consolidated its position in the global coffee industry with B2B customer base spread across more than 100 countries. Leveraging its strong global presence as B2B player, the company entered B2C segment in India.

ChallaSrishant, Managing Director, CCL Products India Ltd, said: “Building on the strong foundation that our Chairmanhas laid, CCL has grown by focusing on creating innovative products like functional coffees, cold brew instant coffees, microground infused coffees, specialty instant coffees and so on. We have created a library of more than 1,000 unique blends of coffee for our customers over the years”. This base of products has given us the confidence to launch our own brands in the domestic marketand create a sustainable B2C vertical, he added.

CCL focused on creating coffee blends specifically tailored to the tastes and preferences of Indian consumers. In 2016, the company launched ‘Continental Coffee’. Today, the company’s multitude of offerings range across instant coffee, freeze dried, roast &ground and premix. In a short period of time, in a market dominated by two significant players, Continental Coffee stood at the No.3 position in the Indian market. To further strengthen its B2C segment globally,CCL acquired 6 coffee brands from Sweden-based coffee roasters Löfbergs Group in June 2023. This acquisition is part of CCL’s strategy to strengthen its B2C business and accelerate growth globally With an objective to become an FMCG company, CCLentered plant-based protein snacks category with Greenbird brand under which it launched 100 per cent vegetarian products like ‘chicken like nuggets’, ‘chicken like sausages’, ‘chicken like kababs’ and ‘keema’. The company strongly believes that this categoryhas immense growth potential in future.