Vintage Coffee and Beverages Ltd commences commercial production of 4,500 MTPA

Vintage Coffee and Beverages Limited ("VCBL") is pleased to announce the successful commissioning of an additional 4,500 metric tons per annum capacity with effect from 23rd March, 2026 under its brownfield expansion project for soluble coffee. This expansion has been executed at one of its wholly owned subsidiary's instant coffee manufacturing facilities, located near Rachur Village, Veldanda Mandal, Nagar Kurnool District, Telangana.

With the commissioning of this additional capacity, the company's total installed production capacity has increased significantly from 6,500 metric tons to 11,000 metric tons per annum, marking a major milestone in its growth trajectory.

Commenting on the development, Mr. Balakrishna Tati, Chairman and Managing Director of Vintage Coffee and Beverages Ltd., said "The new equipment's are performing satisfactorily and is expected to enhance the production by approximately 70% on per annum basis. Following the expansion, the company's annual production capabilities now stand at 6,000 metric tons of spray-dried coffee and 5,000 metric tons of agglomerated coffee. I want to appreciate efforts of the team for commissioning the plant ahead of its committed timelines of March 31, 2026.

The entire expansion has been funded through internal accruals, reflecting the company's strong financial discipline, robust cash flows, and commitment to sustainable growth without reliance on external debt."

In line with its strategic growth initiatives, the company has also commenced the development of a greenfield project for an ultra-modern freeze-dried instant coffee plant near Hyderabad. The proposed facility, which will be equipped with advanced European technology, is designed with an installed capacity of 5,500 metric tons per annum and is expected to commence commercial production next year. This project is anticipated to further strengthen the company's product portfolio and enhance its position in the global instant coffee market.

Commenting on the recent crises in Middle east, Mr. Balakrishna Tati said "The coffee industry is largely unaffected by the recent middle east crises since the major coffee producing nations are not located in that region. The raw material availability is robust, and the company is taking efforts to manage supply chain to ensure timely delivery to customers. On the customer side, demand remains robust and VCBL is committed to maintain quality and supply differentiated products to its customers. We expect to ramp up production at the new 4500 MTPA facility through Q1FY27. The demand environment remains robust, and the company is on track to achieve its FY27-FY28 plans."

Shares of Spaceage Products Ltd was last trading in BSE at Rs. 133.20 as compared to the previous close of Rs. 131.85. The total number of shares traded during the day was 105940 in over 1017 trades.

The stock hit an intraday high of Rs. 133.80 and intraday low of 126.45. The net turnover during the day was Rs. 13864934.00.

Source : Equity Bulls

Keywords

VintageCoffeeandBeverages INE498Q01014 BrownfieldExpansion