Vintage Coffee and Beverages Ltd is expanding its freeze-dried coffee capacity by 5,500 tonnes per annum, taking total installed capacity to 16,500 tonnes from the current 11,000 tonnes.
The company has secured land from the Telangana Government under the Food Processing Zone. It has also paid substantial advances to equipment suppliers and started construction.
Expansion nears commissioning
The company expects to complete trials by June and commence commercial operations from the second quarter. Another production line is likely to be added soon after completion of the 5,500-tonne line.
The company has secured Letters of Intent from customers for 70-80% of the new freeze-dried coffee capacity, subject to quality and pricing.
Capacity scales up
“Earlier, in January 2025, we expanded our manufacturing capacity by adding 2,000 tonnes and in March 2026 another 4,500 tonnes, taking total installed capacity to 11,000 tonnes,” said Vintage Coffee and Beverages, Chairman and Managing Director Balakrishna Tati, during an analysts’ call.
The entire expansion was funded through internal accruals and became fully operational in Q1 FY27. Capacity utilisation of the 4,500-tonne addition stood at 90-95% during the quarter.
Revenue target set
The company expects FY27 revenue of ₹850-900 crore, based on 60-65% capacity utilisation of its 11,000-tonne capacity.
“With the addition, the incremental revenue we are going to get is around ₹360-380 crore, which will bring the total revenue to ₹890-905 crore if we operate at around 95% utilisation,” he said.
Merger to improve efficiency
The National Company Law Tribunal (NCLT) approved the amalgamation of wholly owned subsidiaries Vintage Coffee Pvt Ltd and Delecto Foods Pvt Ltd with Vintage Coffee and Beverages, effective July 21, 2026.
Delecto Foods produces 2,000 tonnes a year of chicory and chicory-mix products and generates annual revenue of about ₹42-45 crore.
The merger is expected to improve operational efficiency, reduce administrative costs, strengthen profitability and generate economies of scale. It will also consolidate manufacturing facilities, equipment and human resources under a single corporate entity.