Stocks of CCL Products Limited are currently trading at Rs 637, gaining around 0.60 percent compared to the previous closing levels of Rs 633.40. The scrip hit its 52-week high today at Rs 656.35. It has a market capitalization of Rs 8,467 crores.
In a recent filing with the exchange yesterday, the company intimated about an ‘Asset-Purchase agreement’ with Food Brands Group, a subsidiary of Lofbergs Group.
The agreement is with respect to an acquisition of a total of 6 brands of the subsidiary company namely ‘Plantation Wharf’, ‘Percol’, ‘Rocket Fuel’, ‘The London Blend’, ‘Percol Fusion’, and ‘Perk Up’. The consideration decided between the parties pertaining to the acquisition is £ 550,000.
The mentioned strategy gives the company a boost to expand its manufacturing and distribution on a global level. The acquisition move will enable CCL to have access to the major supermarkets in the United Kingdom (UK) which is usually said to be Europe’s largest instant coffee market.
“Percol is an exciting venture and a brand with undoubted favourable heritage. In close cooperation with our UK sales & marketing partner, we will innovate, introduce new products and focus on B2C and B2B marketing to realise value for our shareholders, employees, partners & clients”, CCL CEO Mr. Praveen Jaipuriar commented on the acquisition.
The company’s latest financial numbers portray a consistent increase in the operating revenues with the most recent movement being from Rs 1,462 crores during FY21-22 to Rs 2,071 crores in FY22-23.
Moreover, the net profit figures, too, have shown decent growth in numbers and, the recent movement shows an up trend from Rs 204 crores during FY21-22 to Rs 268 crores in FY22-23.
CCL Products Limited is engaged in the business of manufacturing and marketing a wide range of processed coffee internationally. The company’s product portfolio includes spray-dried coffee powder, freeze-dried coffee, roast & ground coffee, etc. The majority of revenue is generated from India, Switzerland, Singapore, and Vietnam.
Written by Amit Madnani
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