Tata Coffee net up 43 percent in 2011-12

May 9th, 2012 - 12:20 am ICT by IANS  

Bangalore, May 8 (IANS) Asia’s largest integrated coffee plantation firm Tata Coffee Ltd Tuesday reported a Rs.79 crore net profit for 2011-12, posting a 43 percent increase year-on-year (YoY) from Rs.55 crore in 2010-11.

In a regulatory filing Tuesday, the Tata group company said total income from operations for the fiscal rose 27 percent YoY to Rs.509 crore from Rs.401 crore a year ago.

For the fourth quarter of the fiscal, net profit zoomed 100 percent YoY to Rs.28 crore from Rs.14 crore in same period year ago and total income 33 percent YoY to Rs.133 crore from Rs.100 crore a year ago.

“Focus on the premium segment for speciality and certified coffees resulted in 28 percent increase in volumes sold YoY. We also targeted the US market for its Robusta coffee and saw a manifold increase in volumes,” Tata Coffee managing director Hameed Huq said in a statement later here.

The instant coffee division has also turned around following process-centric business transformation for consolidation and growth. Customer-focused approach, quality improvements, engaged work force and focus on a safe working environment have propelled the division’s sustained performance.

The triple certifications of Rainforest, UTZ and SA8000 helped the company capitalise on its focus on quality, people, environment and community by enabling its thrust into the premium market for differentiated coffees.

“As domestic coffee consumption has been growing steadily over the years due to double-digit growth in the instant coffee category and out-of-home consumption, we are gearing up to supply coffee beans to cafes and the tie-up with Starbucks will propel this growth in the coming years,” Haq said.

The company’s Eight O’ Clock coffee in the US continued to be the number one whole bean coffee brand in the grocery segment (Nielsen) and the fourth in the overall branded segment. The brand has entered into the fast growth single serve coffee segment in the US, which augurs well for its future.

“Globally there has been a switch of consumers from national brands to private labels looking for high quality, tempting flavours brewed from the finest ingredients. We have been able to cater to the needs of such consumers with innovation of products and technology,” Haq said.

As the country’s largest coffee producer and second largest exporter ofinstant coffee, the company ships the beans to countries in Europe, Asia and North America.

The company had put in place various climate change initiatives and greeninitiatives to reduce the carbon footprint.

The company is a carbon sink of 1.6 lakh thousand tonnes carbon dioxide equivalent sequestered and is the largest carbon sink in the Tata group. This is primarily from the 1.1 million trees which are the shade for the coffee crops.

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