As you sip your next cup of coffee, you may want to think about the big business brewing behind the scenes.
Italian coffee major Lavazza has big plans. Their aim is to sell Indians shots of expresso, but with these small sips they are looking to make big investments in the country.
Lavazza is brewing more than just coffee, as the international coffee company is looking to invest another 6-8 million euros over the 100 million euros that it has in the last three years.
The company is in the process of setting up a factory in South India with an existing capacity of 1500 tons/annum, which they hope to increase to 5500 tons/ annum.
Attlio Capuano, Asia and Pacific director of Lavazza, said, “India is a big market for coffee production. So we decided to open the factory in Tamil Nadu. It can be a quick return to investment. So the reason why the factory is there is because India is going to be one of our future markets of operation.”
But the domestic market is just the first step. Lavazza hopes to replace teacups with expresso cups in the far east as well.
“First of course is the domestic market and then we are looking at China as it’s a growing area. I foresee south east Asia and we hope to use the Indian market to supply to China and Japan,” Capuano said.
The business model for the company looks to deliver the 360-degree service.
Capuano said, “It’s a tea drinking country. Expresso is totally new and home is the last link to the whole process. We introduced our services in fine dining and hotels. We have managed to reach penetration in hotels. Second is the corporate business. We have an important presence in the country and we have grown tremendously in the last two years.”
With new markets in their sight, there’s ample reason to drink to it.