Published 01st July 2024
The FMCG sector has been struggling with giants like HUL, Marico, and Dabur unable to generate double-digit volume growth in the last few years. But CCL Products stands out!
CCL Products' volumes have grown 10-12% annually in the last decade, with a 14% growth in FY24. In fact, it is aiming for 18-20% volume growth in the coming years!
The company primarily operates as a B2B player and sells consumable coffee (fast consumer goods category) to global coffee brands.
– Eyeing to raise market share (global volumes) from 8% to 15% – Raised its capacity by over 2 times to 71,000 metric tonne between FY17-FY24 – Aggressively expanding into B2C segment
Its bold goals, growth strategy, decent P/E of 32x and 5-year median ROE of 18% makes it an enticing bet. But the company may have been too confident.
The company is in for many hurdles from industry slowdown to stiff competition. To read if its goals are within its reach or not, click on the link below and head to our story.