Thread by @SmartSyncServ

Notes from ARs19-20

CCL Products

•Only the 1st 2 pages are in Colour

•Rest is just Black&White

•Boring Appearance

•Often what gets ignored is the impressive business and rich industry data it has in store

Read on

@suru27 Your clean AR tweet was reminded🙂

1/

• 1993: Inception
• 2003: Capacity from 3.6K to 6K MTs
• 2005: India’s 1st FD plant
• 2007: 2nd FD plant- 4500 MTs
• 2010: 3K MTs Granulation plant -Switzerland
• 2012: Vietnam 10K MT SD plant
• 2014: Continental Coffee Set up
• 2019: 5K MT FD plant in SEZ

2/

Notes from MDA

Instant Coffee (IC)

•IC is formed by Freze Drying or Spray Drying

•Convenience, Economy and Homogeneity make IC desirable.

•The IC industry moved from cheap alternative instant beverage to new trend specialty, single origin, high quality niche coffees.

3/

Notes from MDA

•CCL is one of the elite manufacturers, that can provide all types and forms of coffee from one single location

•R&D focused, successful international presence, ventured India market in 2014

4/

•3rd largest domestic brand coffee in South India for the year 2019-20

•New SEZ FD unit commenced operations in FY20 to cater to growing international demand

•Tech makes IC taste as good as roast & ground coffee.

5/

•Launched 3-in-1 premixes (Hazelnut, Cappuccino, Mocha, Caramel)

•Launched premium FD coffee (Coconut, Spice, Lemon and Hazelnut)

•Continental Decaf launched under specialty coffees

,•Developing new products in the wellness category to catch up on the upcoming trend

6/

•IC market in India is growing at 8% p.a.

•Imp factors: consumer lifestyle, higher disposable incomes, a growing number of young professionals & increased access to coffee machines in offices and institutions.

7/

•Increasing share in volumes in supermarkets of Europe

•Necessary capacity augmentation done to meet additional demand.

•The Covid-19 pandemic has further boosted the demand

8/

•International Coffee Organization (ICO) study says, 1 % drop in GDP growth is due to a fall in demand for coffee of 0.95 % or 1.6 million 60-kg bags

•Out of Home consumption drastically reduced but at home consumption increased, which is positive for IC.

9/

•Revenue in IC was US$96 Billion in 2020

•Mkt expected to grow by 11.5% (CAGR 2020-2025).

•In the IC, the volume is expected to grow to 1.7 Billion kg by 2025.

•Asia Pacific leading the market share and is expected to remain on the top over the next few years.

10/

•COVID presented an opportunity in premix & functional segments due to incr in in-house consumption of specialty coffees

•Premium quality is in demand as focus shifting to high quality coffee manufactured under hygienic conditions

•Huge potential in the domestic market

11/

•CCL has a price advantage and can be competitive vis-à-vis competing brands.

•The roast and ground segment continue to dominate the overall coffee consumption and your Company has also introduced R&G versions also in the suitable localized palate.

12/

•The impact of COVID is less in Vietnam & CCL is to supply to new markets from the Vietnam Plant.

•Identifying countries where operations are hindered due to COVID & trying to provide continuous supplies there, which can add few more customers into its portfolio.

13/

Risks, Concerns Threats

•COVID related inbound and outbound logistic issues

•CAPEX delay in Vietnam and India due to COVID induced disruption

•Additional capacities around the world

•Weather conditions

•Geo political, Regulatory, Duty related etc.

14/

Top Ten Shareolders

15/

Strong Financials

•Balance Sheet

•Profit & Loss Account

•CFS

16/

Management does not disclose everything in AR.

If you are curious to know about the prospect of CCL, do check the last 6 con-calls below:

smartsyncservices.com/ccl-products/

If you found value in this thread don’t forget to L & RT🙂🙏

End