CCL - CCL Products

📊 NSE: CCL 🏢 Tea 📅 Last Updated: 12/13/2025 20:43

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 18% YoY to reach INR 3,105.75 Cr. The company operates primarily in a single business segment: Coffee and Coffee-related products. While an FMCG Products Division exists, it does not currently meet the quantitative thresholds for separate reporting.

Geographic Revenue Split

The company maintains operations in India, Vietnam, and Switzerland. It is expanding its presence in Southeast Asia, Europe, and Latin America through private label growth and branded retail.

Profitability Margins

Consolidated net profit stood at INR 310.34 Cr, while standalone net profit was INR 92.30 Cr. Profitability is driven by improved capacity utilization and operational efficiencies, though gross margins are lower in B2B compared to B2C, while net margins are higher in B2B due to zero marketing spend.

EBITDA Margin

Not explicitly disclosed as a percentage, but the company reported 'resilient operating margins' despite global volatility, supported by a diversified product portfolio and disciplined cost management.

Capital Expenditure

Capital expenditure was funded through strong cash flows from operations to support capacity expansion, specifically the optimization of global capacity following the Vietnam expansion.

⚙️ Operational Drivers

Raw Materials

Coffee beans (primary raw material) and packaging materials for the FMCG division.

Import Sources

Sourced globally to support operations in India and Vietnam; specific countries beyond Vietnam and India are not listed.

Capacity Expansion

Currently optimizing global capacity following the Vietnam expansion. The company aims to double its domestic retail reach from 150,000 outlets to 300,000 outlets within the next 3 years.

Raw Material Costs

Raw material costs are a significant portion of expenses; the company uses strategic raw material stocking to mitigate the impact of fluctuating coffee bean prices which can adversely affect the bottom line.

Manufacturing Efficiency

Efficiency is driven by automated blending systems, predictive maintenance frameworks, and improved throughput to reduce waste.

Logistics & Distribution

The company currently distributes directly to 130,000-140,000 outlets, with a total reach of 150,000. Expansion is calibrated to ensure throughput matches the cost of reaching additional outlets.

📈 Strategic Growth

Expected Growth Rate

11%

Growth Strategy

Growth will be achieved by doubling retail outlet reach to 300,000 in 3 years, premiumizing the portfolio with specialty and flavored SKUs, scaling branded retail domestically, and expanding private label segments in Southeast Asia and Europe. The company is transitioning from a manufacturing-first model to a customer-experience-driven global coffee partner.

Products & Services

Instant coffee (spray-dried and freeze-dried), roasted and ground coffee, coffee premixes, specialty coffee, and flavored coffee SKUs.

Brand Portfolio

Continental Coffee (CCL).

New Products/Services

Specialty and flavored SKUs are being launched to premiumize the portfolio and increase margins.

Market Expansion

Targeting expansion in Southeast Asia, Europe, and Latin America, alongside doubling the Indian domestic retail footprint.

Market Share & Ranking

The Indian instant coffee market is valued at INR 3,500 Cr; CCL is a major player leveraging an 11% industry CAGR.

Strategic Alliances

Maintains partnerships with international retail partners for private label manufacturing.

🌍 External Factors

Industry Trends

The Indian coffee market is growing at an 11% CAGR, driven by instant formats. There is a shift toward ethically sourced blends and premiumization, which CCL is positioning for via specialty SKUs.

Competitive Landscape

Competes in the global private label market and domestic branded retail against other packaged beverage players.

Competitive Moat

Moat is built on cost competitiveness, scalable customized manufacturing, and a massive distribution network of 150,000 outlets. This is sustainable due to high market entry barriers created by complex international ESG compliance requirements.

Macro Economic Sensitivity

Sensitive to global macroeconomic shifts and coffee commodity price cycles which impact realization and volume growth.

Consumer Behavior

Increasing demand for 'instant formats' and 'packaged beverages' in both urban and rural India.

Geopolitical Risks

Geopolitical instability is identified as a factor that complicates risk management and could impact international supply chains.

⚖️ Regulatory & Governance

Industry Regulations

Complies with BRC Version 8 (A Grade), IFS Food Version 7 (Higher Level), and Organic Coffee Certification. These are essential for maintaining access to international markets.

Environmental Compliance

Focusing on 40-50% renewable energy adoption. Non-compliance with ESG issues like climate change and biodiversity is noted as a risk that could create market entry barriers.

Legal Contingencies

The company reported zero cases of imprisonment or punishment for regulatory non-compliance in the latest reporting period.

⚠️ Risk Analysis

Key Uncertainties

Coffee bean price volatility and potential supply chain disruptions are the primary uncertainties, with the potential to negatively impact the bottom line if not managed proactively.