Lavazza plans to make India its second biggest coffee market - Hindustan Times
close_game
close_game

Lavazza plans to make India its second biggest coffee market

IANS | By, Hyderabad
Jan 28, 2011 05:25 PM IST

Launching its new manufacturing facility in India, Lavazza, world leader in the coffee market, on Friday said it plans to develop India as its second largest coffee market in the world.

Launching its new manufacturing facility in India, Lavazza, world leader in the coffee market, on Friday said it plans to develop India as its second largest coffee market in the world.

HT Image
HT Image

The Italian firm, which has presence in over 90 countries, began work on its state-of-the-art manufacturing facility at Sri City SEZ at Tada in Nellore district of Andhra Pradesh.

Hindustan Times - your fastest source for breaking news! Read now.

Coming up with an investment of 20 million Euros (Rs.125 crore), the facility will be ready by the year-end and will become fully operational by the middle of 2012.

"With an initial capacity of 1,100 tonnes, the facility will not only meet the requirements for the Indian market, but will become a manufacturing hub for the subcontinent and Asia Pacific," Giuseppe Lavazza, vice president of Lavazza Group, told reporters.

The facility will replace the existing one at Chennai, which was launched in 2007 with an annual production of 960 tonnes. The new facility is expected to have production capacity of 1,400 tonnes in the second year and 1,600 tonnes in the third year.

The firm plans to make India its second largest market in the world in five years. France is presently at the number two position with a revenue of 100 million Euros while India ranks at fifth place with 30 million Euros in revenue and annual sale of 800 tonnes of coffee.

Giuseppe said Italy contributes 60 percent of the $1.5 billion turnover of the family-owned company. The 115-year-old company sells 60,000 to 70,000 tonnes of coffee in Italy every year. Lavazza is the sixth largest coffee roaster in the world.

Marco Lavazza, Development and Acquisition Manager of Lavazza Group, said the setting up of the new manufacturing facility marked the beginning of the second phase of the firm's expansion, which began with its acquisition of Barista Coffee Company Limited and Fresh & Honest Café Limited, India's leading coffee vending and retailing company in 2007.

Baritsa Lavazza presently has 200 coffee shops in the country while Barista Crème is present in over 30 locations. Fresh & Honest Café Limited has 3,000 coffee vending machines in 22 cities of India.

"With new initiatives, Lavazza will bring the best technology and services to the growing Indian coffee market," said Italy's ambassador to India Giacomo Sanfelice di Monteforte.

Andhra Pradesh's minister for Major Industries J Geeta Reddy assured all cooperation from the state government to Lavazza in its initiatives.

Unlock a world of Benefits with HT! From insightful newsletters to real-time news alerts and a personalized news feed – it's all here, just a click away!- Login Now!
Stay informed on Business News along with Gold Rates Today, India News and other related updates on Hindustan Times Website and APPs
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Sunday, March 10, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On