Thread by @rishavv_agarwal

#Cclproducts (India) is involved in the manufacturing, trading, and distribution of coffee. The company operates primarily in India, Vietnam, and Switzerland.

#Global Coffee Industry Overview: The coffee industry is worth over $100B and continues to grow. Consumption is increasing, with 500B cups consumed annually. India's domestic market is booming due to the third wave of coffee and convenient e-commerce. #CoffeeIndustry

How Coffee Reaches Your Cup: Coffee is made by extracting flavors and caffeine from ground beans with hot water. This releases volatile compounds for aroma and non-volatile compounds for taste. Caffeine provides a temporary mental and physical boost. #CoffeeMaking

CCL Products Overview: Founded in 1994, CCL is the world's leading private-label contract manufacturer of instant coffee. It offers freeze-dried, spray-dried, and agglomerated varieties. CCL's processing capacity is 38,500 MT, contributing to the global capacity. #CCLProducts

Spray Drying vs. Freeze Drying: Spray-drying is a cost-effective method, while freeze-drying produces higher-quality coffee. Spray-drying has lower operating costs, while freeze-dried coffee commands higher profit margins. Both methods have their advantages. #SprayDrying #Freeze

Unique Features of CCL Products: CCL focuses on R&D, creating over 1000 coffee blends. It's the only company worldwide capable of producing freeze-dried, spray-dried, and agglomerated coffee under one roof. CCL exports to 90+ countries, serving diverse clients. #UniqueFeatures

Instant Coffee Market Size: The global instant coffee market is currently around 900,000 tons and growing at a 2.5% annual rate. It's projected to have a 8.21% CAGR from 2023 to 2025. Convenience, longer shelf life, and lighter weight make it popular worldwide. #InstantCoffee

Expansion Plans: CCL plans to increase its capacity from 38,000 to 77,000 tons by FY25. It's investing in Vietnam and India, with an additional 6,000 tons of freeze-dried coffee. These expansions will help meet the growing demand and strengthen market presence. #ExpansionPlans

Revenue Breakup: CCL exports to nearly 90 countries, generating 85% of its revenue from exports. The remaining 15% comes from the Indian market. Revenue is distributed across regions like the USA, Europe, and CIS, reducing concentration risk. #RevenueBreakup

Coffee Cultivation: The coffee value chain starts with cultivation, where coffee beans are grown and harvested. This process involves careful cultivation practices and harvesting of ripe coffee cherries, setting the foundation for quality coffee production. #CoffeeCultivation

Top 5 Coffee Producing Countries: The top five coffee-producing countries are Brazil, Vietnam, Colombia, Indonesia, and Ethiopia. These countries contribute significantly to the global coffee production, with Brazil leading the pack. #CoffeeProduction #Top5Countries

Growth Outlook: CCL is investing in capacity expansion in Vietnam and India, aiming to increase its total capacity from 38,000 MTPA to 77,000 MTPA. The company is in a growth cycle and expects to gain market share in the instant coffee industry. #GrowthOutlook #MarketShare

Management and Promoter Ownership: CCL's founder, Challa Rajendra Prasad, has led the company's significant capacity growth. He recently received a lifetime achievement award for his contributions. Challa Shrishant, his son, now leads the company. #Management #PromoterOwnership

Sustainable Coffee Practices: The coffee industry is increasingly adopting sustainable practices. CCL Products has implemented various initiatives, including water and energy conservation, waste management, and support for farmers' livelihoods. #SustainableCoffee

Global Coffee Consumption Trends: Coffee consumption is rising globally due to evolving consumer preferences, increased urbanization, and the expansion of coffee shop culture. Emerging markets, such as India and China, are experiencing significant growth. #CoffeeConsumption

#Financialperformance :
(March):
Sales: 2021=1242,2022=1462,
2023=2071
OPM:
2021=24%,2022=23%,
2023=19%
PAT:
2021=182,2022=204,
2023=269

Conclusion:CCL Products is a leading player in the global coffee industry, specializing in contract manufacturing of instant coffee. With a focus on R&D,diverse product offerings, and capacity expansion plans,CCL is well-positioned for future growth. #CCLProducts #CoffeeIndustry

#Key Risk:

Possible challenges include delays in capacity utilization, the emergence of supply chain constraints, and an upward trend in coffee prices.

PS:- It’s not an investment advise. Your money,Your profit,Your loss.

Thank you for reading:)