Coffee company CCL Products India Ltd (Continental Coffee), based in Andhra Pradesh, is investing US$20 million in doubling the capacity of its coffee manufacturing facility in Viet Nam, Times of India reported.

The capacity of the Viet Nam facility, which makes about 13,000 – 14,000 metric tonnes per annum (mtpa) spray dried coffee for global markets, are expected to double to 26,000 mtpa by the end of 2022, said CCL Products CEO Praveen Jaipuriar.

“The doubling of the Viet Nam capacities will take our total capacities to 50,000 – 55,000 mtpa and help fuel our growth in the next 2 – 3 years,” he said.

Elaborating on the reasons for expanding in Viet Nam, Jaipuriar pointed out that Viet Nam not only offers a tariff advantage for exports but is also a strong coffee growing country, which means the proximity to the raw material also cuts down on freight costs.

Currently, CCL has a total capacity of 36,000 – 37,000 mtpa, a chunk of which is exported. This includes 25,000 mtpa in India across plants at Duggirala, Vijayawada.

Having clocked revenues of around 12.42 billion INR ($167 million) in financial year 2020-2021, CCL is now eyeing revenues of around 16 billion INR in the current fiscal. — VNS