Amalgamated Bean Coffee to export speciality coffee

Anubha Ghosh

Bangalore, Dec 31: In a major shift in strategy, Amalgamated Bean Coffee Trading Co Ltd (ABCTCL), owners of the popular Cafe Coffee Day brand of coffee parlours, has decided to export speciality coffee. Speaking to The Financial Express, ABCTCL director Naresh Malhotra said the Bangalore-based firm plans to move into higher-end coffee which will give bigger returns to the company.

Mr Malhotra said, “We are trying to get away from commodity coffee and instead go in for specialised coffee since the latter offers margins that are three times higher.” Of the company’s total turnover of Rs 180 crore expected in 2001-02, the bulk Rs 100-120 crore is contributed by the export division - ABC Exports. The division is likely to ship 5 per cent of its total exports in terms of volume and 10 per cent by value as speciality coffee during 2001-02. Gradually, the proportion of speciality coffee in total ABCTCL will be increased at the cost of basic coffee.

ABCTCL also does not plan to set up Cafe Coffee Days in the overseas market. Nor does it intend to opt for the franchisee route. Thus, the company is also not looking at an increased turnover from exports.

The company ABC Exports alone accounts for 15 per cent of India’s total coffee exports. Its regular list of customers include food and beverages multinationals based in the US, South America, Europe, Japan, Russia and the Middle East. Having started in 1999, the company currently exports over 30,000 tons of green coffee per annum. Amalgamated Beans owns around 5,000 acres of coffee plantations in Chikmaglur in the Western Ghats of Karnataka. The coffee thus produced is processed in its own plants in its curing works in Hasan and Chikmaglur.