Tatas to up instant coffee export prices by 15-20%

Tata Coffee, Asia's largest plantation company, plans to raise prices of its instant coffee exports by 15-20 per cent beginning next financial year, Managing Director M H Ashraff said today.

Rising input costs have compelled the company to consider prices, he said.

Instant coffee exports contribute near 60 per cent of Tata Coffee revenues and has significant presence in Russia and Commonwealth of Independent countries.

Coffee prices have been trending up with robusta prices touching a 12-year high this week. News reports earlier said Tata Coffee is likely to export 14,000 tonnes this financial year, up a little over 7 per cent from a year ago.

The company is also looking at raising prices of Mr Bean, its umbrella brand, but was yet to take a decision on this count.

Separately, Ashraff said Tata Coffee will likely see margins of 13-14 per cent for the full year this financial year. The margins are expected to improve further in 2008-09 (April-March), he said, without offering more details.

In October-December, Tata Coffee reported a net profit of Rs 3 crore on a total income of Rs 74 crore.