Vintage Coffee and Beverages announces major expansion to triple production by FY25

In a significant move that underscores its ambition in the global coffee sector, Vintage Coffee and Beverages Limited (VCBL) has announced a strategic plan poised to dramatically enhance its market presence and operational capabilities. Under the leadership of Chairman and Managing Director, Balakrishna Tati, VCBL is embarking on a journey of growth and innovation, aimed at setting new industry standards in quality, efficiency, and market reach.

Amid increasing worldwide demand for coffee, VCBL has outlined a plan to augment its production capacity by an additional 2,000 metric tons (MT), targeting a total annual capacity of 6,500 MT. This expansion is scheduled to commence in the upcoming months, with completion anticipated by the end of Q4FY25. Furthermore, VCBL plans to fully utilize its current capacity of 4,500 MTPA by the end of Q2FY25, marking a significant upturn from 52% utilization recorded in Q3FY24. The funding for these ambitious initiatives will be sourced from the proceeds of a recent preferential share issue, aimed at enhancing working capital for increased utilization and the requisite brownfield capital expenditures.

This brownfield expansion will notably increase VCBL’s daily production capacity from 13 MT to 18 MT in the early stages of the fourth quarter of the current financial year. This expansion will enable VCBL to shift its sales strategy towards offering value-added products under various brands, all while adhering to strict certification standards.

In addition to enhancing its production capabilities, Vintage Coffee and Beverages is investing in state-of-the-art automated packaging lines to ensure the safe and efficient delivery of products. The company has also successfully secured significant contracts in key international markets including the Middle East, Europe, Russia, and West Africa. Plans are also underway to introduce VCBL’s proprietary brands in West Africa and Russia, tapping into the potential of these emerging markets.

Domestically, VCBL aims to penetrate select segments of the Indian market, focusing on e-commerce, HORECA (Hotel, Restaurant, and Café), and retail spaces. With these strategic measures in place, VCBL is projecting a revenue increase of 150% by the end of the fiscal year 2025, signaling a transformative phase in its operational and financial trajectory.

This ambitious expansion by Vintage Coffee and Beverages Limited not only highlights the company’s commitment to innovation and quality but also positions it as a key player poised for substantial growth in the competitive global coffee market.