CCL Products India’s orderbook is full this year, Challa Srishant, managing director (MD), told CNBC-TV18.
Coffee prices are trading at a 4-year high, especially Robusta. It was only in the month of July that Arabica coffee traded at 7-year highs as well. There are concerns relating to adverse weather conditions when it comes to the producing countries. It also has to do with logistical bottlenecks because of the COVID-19 restrictions.
“Brands on a larger scale, because the prices have started going up, most of them have decided to start placing orders well in advance. So for this financial year (FY22), we are already quite full in terms of our orderbook and we have started taking orders for the next financial year as well,” Srishant said.
Also Read: Coffee prices at 4-year high, here's why
On coffee price surge, he said, “About 90 percent of our business is dependent on exports, and the way our business is structured, the fluctuation in green coffee prices do not have any impact on our business. We work in a cost-plus model. So if the prices fall, we reduce our prices. If prices go up, we increase our prices also accordingly.”
According to him, the company will double its topline and bottomline in the next three years. “Our primary expansion is going to be in Vietnam. We are also doing a packing facility in India, which will come online in the next couple of months. With the packing facility, we will be able to do value-added products and with the capacity expansion in Vietnam, we are doubling our capacity there. Therefore, we will have sufficient capacity to double our topline and hopefully, bottomline as well over the next three years,” Srishant said.
For the entire management interview, watch the video