CCL Products (India) Ltd, the country's largest coffee exporter expects to commission its 10,000 tonne instant coffee unit in Vietnam over the next two months.

“We have commenced the trials at the new plant built with an investment of $25 million and expect to start production soon,” said Mr Challa Rajendra Prasad, Chairman and Managing Director, CCL said. The new unit is being funded by EXIM Bank of India to the tune of $15 million while the rest is being invested from internal accruals, he said.

CCL, the largest importer of coffees from Vietnam was invited by government there to set up an instant coffee unit in 2010 as part of its plans to encourage local value addition. The company expects to employ about 400-500 people in Vietnam. Besides Vietnam, CCL also imports coffees from Indonesia, Africa and Colombia to re-export them as instant or value added coffees.

The company plans to target the Far East markets including Japan, China and other ASEAN countries from the new unit. “Right now our exports to Japan and China are very small in the region of 100 tonnes and we expect to scale it up. There is also the local market in Vietnam, where we have an advantage,” said Mr Prasad.

CCL, one of the biggest suppliers of instant coffees to about 40 private labels worldwide, has set up an agglomeration and packing facility in Switzerland to repack locally the granulated coffees exported from the Indian facility. CCL, by far is the largest instant coffee manufacturer in India, where it operates a 20,000 tonne unit in Duggirala, Guntur.

Shares of CCL Products (India) Ltd ended marginally lower on the BSE to close at Rs 134.75 on Monday.

vishwa@thehindu.co.in

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