Hyderabad-based Vintage Coffee and Beverages Ltd. (VCBL), a manufacturer and exporter of instant coffee, has enhanced its soluble coffee production capacity by 4,500 tonnes per annum as part of its brownfield expansion project, ahead of its March 31 deadline.
The expansion has been executed at one of its wholly owned subsidiary’s instant coffee manufacturing facilities in Kurnool district of Telangana using internal accruals. With this, the total installed production capacity has increased to 11,000 TPA from 6,500 TPA.
Capacity expansion boosts output
Chairman and Managing Director Balakrishna Tati said: “The new equipment is performing satisfactorily and is expected to enhance production by approximately 70% on a per annum basis. Following the expansion, the company’s annual production capabilities now stand at 6,000 tonnes of spray-dried coffee and 5,000 tonnes of agglomerated coffee.”
In line with its strategic growth initiatives, the company has also commenced the development of a greenfield project for an ultra-modern freeze-dried instant coffee plant near Hyderabad.
Greenfield project to strengthen portfolio
The proposed facility, to be equipped with advanced European technology, is designed with an installed capacity of 5,500 TPA and is expected to commence commercial production next year.
This project is anticipated to further strengthen the company’s product portfolio and enhance its position in the global instant coffee market.
Demand outlook remains strong
On geopolitical issues, he said: “The coffee industry is largely unaffected by the recent Middle East crises since the major coffee-producing nations are not located in that region. Raw material availability is robust, and the company is taking steps to manage the supply chain to ensure timely delivery to customers.”
On the demand side, he added: “Demand remains robust and VCBL is committed to maintaining quality and supplying differentiated products to its customers. We expect to ramp up production at the new 4,500 TPA facility through Q1 FY27. The demand environment remains strong, and the company is on track to achieve its FY27/FY28 plans.”