CCL Products (India) Ltd. is expected to record strong volume growth over the next few years, with a long-term goal for expansion in the business-to-consumer segment, Managing Director Challa Srishant said on Thursday.
The coffee producer posted an impressive growth in the first quarter of the current financial year despite the increase in raw-material prices. Its net profit jumped 18% to Rs 71.47 crore in the quarter ended June.
"We are quite confident about a 15–20% volume growth YoY at least for the next two to three years," Srishant told NDTV Profit. "So keeping that in mind, we go in for the expansion."
The reason why we are an outlier is because we are actually at the base of the pyramid.Challa Srishant
Challa Srishant (Source: CCL Products India website)
Challa Srishant (Source: CCL Products India website)
The Continental Coffee maker is focusing on transitioning to the B2C segment with bulk manufacturing and smaller packs of their products. It is also confident of maintaining a healthy growth rate in its business-to-business segment as well, according to Srishant.
"We are seeing 35–40% growth in the B2C segment and in the B2B segment, we are seeing at least around 15% growth. So, we feel that both are quite sustainable," he said.
With its new plant in India and another one coming up in Vietnam in this quarter, CCL Products will take up its total production capacity to 77,000 tonnes, he said. "So, we don't have any expansion plan in the near future and are more focused on capacity utilisation."
CCL Products reported an 18% growth in its June quarter revenue at Rs 773 crore, which was almost closer to Bloomberg estimate of Rs 774 crore. The company had reported revenue of Rs 655 crore in Q1FY24.
Shares of CCL Products jumped to their highest in over a year on Thursday after its first-quarter profit met analysts' estimates.
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