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Last Updated : Jan 17, 2011 04:03 PM IST | Source: CNBC-TV18

See 20-30% topline growth next year: CCL Products

In an interview with CNBC-TV18, C Srishant, ED, CCL Products, spoke about the latest happenings in his company and sector.

In an interview with CNBC-TV18, C Srishant, ED, CCL Products, spoke about the latest happenings in his company and sector.

Below is a verbatim transcript of his interview with CNBC-TV18's Reema Tendulkar and Ekta Batra. Also watch the accompanying video.

Q: Now that Tata Coffee and Starbucks have got into an alliance, how do you expect the dynamics of the coffee market to change? Will you see any benefit, maybe in terms of an increase demand?

A: Starbucks and Tata Coffee news, one of our first reactions was that it is very good for us because the visibility for coffee is going to increase. That will have an indirect impact on us in view of the sale.

Q: I think you export majority of your products, so any sort of indications of you being in talks with any sort of big MNC or any of the big companies with the likes of Starbucks?

A: No. Not right now. What we do is mainly private label soluble coffee contract manufacturing. So, we export to more than 58 different countries. We are concentrating on this as a core business.

In addition to this, we are launching our own brand in the domestic market. But we do not have any tie-ups with companies like this because what they consume is mostly the roasted ground coffee. What we sell is again soluble instant coffee.

Q: What about the launch of your brand in the domestic business, can you give us more details on what the plan is there? When do you expect a launch or a hard launch, if a soft launch is already done and what is the revenue potential from this?

A: Right now, what we have done is we have launched three different products. One is the freeze dried coffee and long rated coffee and chicory based product. In brand names the supreme continental premium and continental special.

Q: What is the revenue potential?

A: Right now, we are not targeting any large numbers. We have already done the stock launch. We are placing the products on the shelf. We wanted to see the response over the next two months and then see how to proceed further. With respect to advertising and all these other expenses depending on the feedback that we get from the market, we thought we will implement our strategy accordingly.

Q: Since the majority of your revenue comes from exports, a lot of people that we are talking to are talking about increased traction seen in the global markets that should bode well for your revenues. What is your expectation of how next year will pan out, FY12, in terms of revenue and maybe in terms of an earnings per share (EPS)?

A: Yes, In light of the increased demand, what we have done is that we have actually started setting up another factory in Vietnam as well with another additional 10,000 tonne capacity. Our targets next year in fact much higher than this year. We are expecting at least a 20-30% in our top-line and bottom-line.

Q: When does this factory in Vietnam come on stream?

A: By this year itself, by the end of this year.

Q: The investment in this?

A: About 20 million dollars.

Q: The funding?

A: USD 5 million is from equity internal accrual and USD 15 million from debt.

First Published on Jan 17, 2011 03:32 pm