CCL Products FY18 Annual Report Notes
- Ngon Coffee Company Limited is a wholly owned subsidiary, jointly owned by CCL and Jayanti Pte Limited. This is an instant coffee manufacturing unit. Sales = Rs. 297 cr (263.53 cr.) and PAT = Rs. 55.55 cr (45.16 cr.). Investment is Rs. 38 cr.
- Grandsaugreen SA is a wholly owned subsidiary of Jayanti Pte Limited and step down subsidiary of the Company incorporated in Switzerland. This is an agglomeration and packing unit. Sales = Rs. 77.07 cr (22.82 cr.) and PAT = Rs. 0.63 cr (-5.72 cr.).
- Jayanti Pte Limited is a wholly owned subsidiary of the Company incorporated in Singapore for the purpose of promoting instant coffee projects in various countries. This is only an investment Company, hence no operational performance is reported. Investment is Rs. 111.25 cr.
- The Board has decided to wind up M/s. Jayanti Pte Ltd by transferring the shares held by it in M/s.Grandsaugreen SA and M/s. Ngon Coffee Company Limited, to the parent Company, there by making both the Companies directly owned by CCL as 100% Subsidiaries.
- Continental Coffee Private Limited is a wholly owned subsidiary of the Company, which has been established with an objective of promoting instant coffee brands of the Company in the domestic market. Sales = Rs. 23.67 cr (2.77 cr.) and PAT = Rs. -5.87 cr (-3.71 cr.). Investment is Rs. 7 cr.
- Your company has spent the following amounts towards capex during this financial year:
Duggirala plant for Civil works and line balancing of plant & machinery
23 crores.** **At SEZ in Kuvakolli, Chittoor District for establishment of a new freeze dried coffee plant198 crores.
- Your Company has already established its longstanding presence in the international markets in two forms of instant coffee – Spray Dried and Freeze Dried and keeps upgrading the same with latest technology available globally to get better yield. Now, it is focusing to make a mark in the Indian domestic market which is very encouraging.
- The enhanced production capacity of the plant at Duggirala, enabled the Company to cater to the increased demand for instant coffee in international markets.
- Your Company through its subsidiary, Continental Coffee Private Limited is keen to grab a pie of domestic market. Domestic business turnover was around ` 46 crores which included retail as well as institutional sales. A team of professionals has been put to create a distribution network which will be supplemented with demand creating activities as well. More focus is on product development with an aim to increase coffee consumption among the consumers.
- Continental Xtra and Continental Speciale, instant coffee brands of the Company are being seeded in select markets of South India. The freeze dried coffee, Continental Premium is being targeted to institutional segment and retail through e-commerce.
- The presence in Vietnam helps the Company to cater to the coffee needs of ASEAN countries and also this is in close proximity to many South-East Asian nations, Japan, Korea, China etc. Most of these countries have granted Vietnam a most favoured nation status with reduced or NIL duty structures in addition to having savings on logistics.
- The soluble coffee consumption in India is expected to witness a growth of more than 15% year on year and Your Company has made a successful entry in the retail market with its brands.
- Forex earned = Rs. 738 cr., Forex used = Rs. 424 cr.
- Total loan is Rs. 310 cr., out of which Rs. 162 cr is ECB.
- Cash balances of Rs. 44 cr.