homebusiness Newscompanies NewsCCL Products aims to skyrocket Rs 5.5 crore acquisition into Rs 150 crore powerhouse
CCL Products aims to skyrocket Rs 5.5 crore acquisition into Rs 150 crore powerhouse
As the company embarks on this transformative journey, all eyes will be on CCL Products to see how it utilizes its expertise and experience to breathe new life into the acquired brand. With its clear objectives, strategic vision, and determination, CCL Products is poised to disrupt the market and establish itself as a formidable player in the B2C space in the years to come.
CCL Products, an instant coffee manufacturer, has acquired six brands from the Food Brands Group, a subsidiary of the UK's Lofbergs Group. The company expects the acquisition to boost its overseas footprint as it gives the coffeemaker access to major supermarkets in the UK.
In an exclusive interview with CNBC-TV18, Challa Srishant, managing director of CCL Products, shared the company's ambitious plans after acquiring a brand worth Rs 18 crore for a mere Rs 5.5 crore. The objective is to leverage their expertise and resources to transform the acquired brand into a Rs 150 crore company within the next 3-4 years.
"We wanted to replicate what we have done in India, in the UK as well. This is one of the test markets that we are working on," he said.
“In India, we were able to grow from zero to about Rs 150 crore within less than 5 years and over here we have a head-start with this Rs 18 crore acquisition. So we are hoping to achieve Rs 100-150 crore target in about 3-4 years," he added.
Currently, the acquired brand has limited availability, being present only in two retail chains. However, CCL Products intends to change that by strategically expanding its reach. The primary goal is to list the brand in all major supermarkets, ensuring broader access for consumers. This move will not only enhance brand visibility but also pave the way for substantial growth in the market.
“Our objective was to leverage our existing relationships to play some products in more supermarkets. Today it is available only in two of the big chains and our objective is to get it listed in all the other outlets as well,” he mentioned.
While expanding domestically, CCL Products has also set its sights on international markets. The company plans to launch the acquired brand in the United Kingdom initially, tapping into the thriving consumer base in the region. This strategic move will help establish a foothold in the global market and facilitate further expansion into other parts of the world.
With this acquisition, CCL Products aims to transition from being a business-to-business (B2B) player to a business-to-consumer (B2C) player. By focusing on direct consumer engagement, the company plans to harness the potential of the acquired brand, positioning it as a household name and catering directly to the preferences and needs of the target audience.
Challa Srishant expressed his confidence in the potential of the acquired brand, highlighting the synergies between CCL Products and the newly acquired entity. By combining their strengths and leveraging CCL Products' market presence, the company aims to unlock the brand's true potential and achieve significant growth in a relatively short timeframe.
For more details, watch the accompanying video
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