### **Overview** CCL Products (India) Limited is a globally leading manufacturer of instant coffee and coffee-based products, headquartered in Hyderabad, Andhra Pradesh. Established in 1994, the company operates as one of the **world’s largest private-label instant coffee producers** and a top-3 branded coffee player in India. With over 30 years of experience, CCL leverages vertically integrated operations, deep R&D capabilities, and a diversified global footprint to serve customers across more than **100 countries**. Exports constitute **76.49% of total turnover**, underscoring its strong global orientation. The company is strategically transitioning from a B2B-focused supplier to an integrated player with growing B2C brand ambitions, both domestically and internationally. --- ### **Business Segments & Model** 1. **Core Operations (B2B Focus):** - 90% of revenue stems from instant coffee (spray-dried, freeze-dried, agglomerated). - Serves global brand owners, retailers, repackers, HoReCa (hotels, restaurants, cafes), and industrial users. - Follows a **back-to-back, cost-plus pricing model**, minimizing exposure to green coffee price volatility and preserving long-term margins. 2. **Branded Business (B2C Expansion):** - Operates under **Continental Coffee (India), Percol, and Rocket Fuel (UK/Europe)**. - Aims to increase B2C share from 10% to **50% of total revenue by 2030**. 3. **Diversification Initiatives:** - Launched **Continental Greenbird**, a plant-based meat and snack brand. - Piloting protein-infused snacks and functional coffee blends targeting wellness trends. --- ### **Global Manufacturing & Supply Chain Network** CCL operates integrated facilities in three key geographies: | Facility | Location | Key Focus | |--------|--------|--------| | Duggirala Plant | Andhra Pradesh, India | India’s first freeze-dried coffee plant (est. 2005); multi-format production for export | | Kuvvakolli Plant | Andhra Pradesh, India | Dedicated freeze-dried coffee; 10,000MT automated packing & 5,000MT agglomeration capacity | | Ngon Coffee Co. | Vietnam | Largest coffee plant in Vietnam; 30,000MT capacity (spray & freeze-dried); operational expansion completed Jul 2025 | | Continental Coffee S.A. | Switzerland | Agglomerated & granulated instant coffee; direct B2B supply to European supermarkets | - **Total Group Capacity:** ~77,000 metric tons (MT), up from 30,000 MT seven years ago. - **Freeze-dried Coffee:** Accounts for ~25% of capacity; high-margin, premium segment. - All facilities meet global quality, traceability, and customization standards. --- ### **Global Market Strategy** #### **Europe (UK Focused)** - **Acquired Brands:** Purchased **Percol, Rocket Fuel, Plantation Wharf, The London Blend, Perk Up, and Percol Fusion** from Löfbergs Group in Jul 2023. - **Strategy:** Build brand awareness in the **UK first**, then expand across Europe. - **Initiatives:** - Rebranding Percol with new packaging and formulations (2023–2025). - ATL & BTL campaigns, social media, and product innovation (e.g., coffee bags, cold brew). - Goal: Achieve **₹50–100 crores in sales** across 3–4 international markets. - **Local Agglomeration:** 300MT capacity in Europe to serve fragmented, low-volume clients quickly. #### **North America** - US market volume: **4,000–5,000 MT** growing at **15% YoY**. - Key innovation: **Instant cold brew**, developed for Trader Joe’s and now sought by other retailers. - Focus on **private-label specialty blends** and small-pack formats. #### **Southeast Asia & Latin America** - Formed new partnerships; focused on **premix coffee**, aligned with regional preferences. - Vietnam plant improves **proximity to East and Southeast Asia**, enhancing supply chain resilience and responsiveness. #### **Future Geographic Expansion** - Targeting **Africa and Eastern Europe** via B2B partnerships. - Entering **China, Taiwan, and Middle East** with early traction. - Plans to avoid conflicts with existing B2B clients while expanding retail presence. --- ### **Domestic Market Presence (India)** - **Revenue (FY2024–25):** ~₹430–440 crores, with **B2C segment at ₹300 crores**. - **Branded Growth:** 50% YoY; **3rd largest branded instant coffee player** in India. - **Distribution:** - Supplies **150,000+ retail outlets** across all 28 states. - 65–70% of branded sales via general/regular trade; rapid growth in **e-commerce and quick commerce**. - Modern trade presence in **Reliance, Blinkit**, and others. - **E-commerce Performance:** ₹3 revenue per ₹1 CAC — industry-leading efficiency. #### **Key Initiatives in India** - **Continental Coffee:** Available via 700+ distribution partners. - **Vending Machines:** 4,000+ units; revenue **₹20–25 crores**, targeting **₹100 crores by 2029**. - **Premium Strategy:** Entering freeze-dried and flavored segments to balance margins. - **Retail Formats:** - 3 **Contico** quick-service outlets in Hyderabad (proof of concept). - 3 **Continental Coffee cafes** launched; expansion pending validation. --- ### **Innovation & Product Development** - **Specialty Coffee:** - Developed **freshly brewed-like instant specialty coffee** — strong client interest. - Accounts for <2% of volume but high-margin; targeting **4–5% share**. - **R&D Edge:** - Custom blends library of **1,000+**, developed for specific clients. - Can replicate client profiles in **1–2 attempts**. - **Recent Launches:** - **Instant Cold Brew** – global success, reduced customer cost from $150/kg to $30/kg. - Flavored 3-in-1 premixes (**THIS** brand: Cappuccino, Mocha, Caramel). - **Decaf, Coconut, Lemon, Spice** freeze-dried variants. --- ### **Risk Management & Competitive Advantage** - **Challenges:** - High green coffee prices, climate risks, supply disruptions, geopolitical tensions, freight volatility (e.g., Red Sea). - **Mitigation:** - Multi-location manufacturing (India, Vietnam, Switzerland). - Global sourcing and proactive inventory planning. - **No speculative inventory** — production only against confirmed orders. - **Competitive Edge:** 1. **Vertically integrated and scalable** manufacturing. 2. **Cost-plus model** ensures margin stability. 3. **Customer-led innovation** and speed-to-market. 4. **Low funding cost** due to strong credit rating. 5. **Strategic partnerships** rather than transactional relationships. --- ### **Future Strategic Priorities (2025 and Beyond)** 1. **Premiumization:** Launch **specialty, flavored, freeze-dried, and plant-based coffee mixes**. 2. **Geographic Expansion:** Scale in **Africa, Eastern Europe, China, and the Middle East**. 3. **B2C Growth:** Strengthen **Direct-to-Consumer (D2C)** and e-commerce channels. 4. **Brand-Led Growth:** Invest in **data-driven consumer insights**, ATL marketing, and proof-of-concept retail formats. 5. **Sustainability:** Drive **energy efficiency** and **circular production models**. 6. **Demerger Finalization:** Continental Coffee Pvt Ltd now focuses exclusively on **retail B2C ventures**, while core manufacturing remains with parent. ---