The top quality blend will retail under the 'Araku' brand at a premium pricing, and is cultivated by the indigenous tribes of the Araku Valley in Andhra Pradesh.
India's coffee exports in January to June rose 20 percent at 192788 tons. According to US Department of Agriculture (USDA), world coffee production for 2016/17 is forecast to rise 2.4 million bags from the previous year to 155.7 million bags.
TGBL, world's second largest player in the branded tea category has entered the branded coffee space at a time when coffee consumption has started rising rapidly across India.
In 2014-15, the total production of both Arabica and Robusta coffee stood at 8,596 tonnes.
The company had clocked a consolidated net profit of Rs 30.31 crore in the year-ago period. However, the total consolidated income of the company during April-June period of current financial year rose to Rs 396.04 crore from Rs 374.52 crore in the same period of last fiscal.
The primary reason for growth in profits was superior performance in the Coffee Plantation business and in Value added products driven by the results of the company's US operating subsidiary, Eight O'Clock Coffee.
Tata Coffee expects markets of West Asia, Turkey and Iran to open up and becoming new buyers. It is also witnessing shift in dynamics of its US market business. "We are shifting much of our business from bulk to packaging currently," said Huq.
Jonathan Barratt, chief investment officer at Ayers Alliance, told CNBC Asia's "Squawk Box" on Monday that extreme weather conditions in Brazil and India have dramatically altered the supply/demand dynamic in the global coffee and sugar markets.
Hameed Huq of Tata Coffee told CNBC-TV18 that he expected an increase in their production of Arabica crop by 30 percent. However, he anticipated a flat growth in its Robusta crop.
Are espresso drinkers adding more sugar to their coffee? Agricultural commodities traders and analysts have noticed that the two markets have been moving more closely together than ever over the past few months.
Coffee prices recently underwent a 20% increase, which has led to domestic companies hiking their prices. Hameed Huq, the managing director of Tata Coffee tells CNBC-TV18 that he expects the price of coffee to remain at this level due to depleting stock levels in consuming countries.
Consumers in India already paying more for many essential commodities now need to pay more for their favourite cup of coffee.
World coffee exports rose by 9% to 8.76 million bags of 60 kg each in June this year on the back of increasing global demand.
Can't do without your daily dose of caffeine? Well get ready to shell out a lot more, says Hameed Huq, managing director, Tata Coffee. He also confirms that talks are progressing with Starbucks Corp and is in its final stages.
Starbucks has stopped buying coffee for the moment as it waits for coffee prices to pull back from a 34-year high, John Culver, president of Starbucks Coffee International, was quoted on Friday as saying.
In an interview with CNBC-TV18, Hameed Huq, managing director of Tata Coffee said there has been shrinkage in production of Arabica in Colombia and Central America. This global shortage of high quality washed Arabica has lead to hike in coffee prices.
Starbucks has signed a pact with India's Tata Coffee to buy coffee from India and explore opening retail stores in the country. In an interview with CNBC-TV18, Hameed Huq, MD, Tata Coffee gave his perspective on the contours of the deal with Starbucks.