Pick of the week: CCL Products

HDFC Sec | March 12, 2019, 1:12 p.m.

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CCL is India’s largest manufacturer and exporter of instant coffee with a market share of ~28%. It supplies to more than 60 countries and has established long term relationships with customers. The ability to manufacture different varieties and blends of coffee as per customer requirements gives the company an edge. Capacity expansion in both India and Vietnam would drive higher revenues and profitability. Benign coffee prices and increasing contribution from branded domestic sales would provide margin expansion.



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