- Plant to be operational by mid-2012
- To cater to South Asia operations of the company
- Investment reinforces Lavazza’s commitment in the Asia-Pacific region
Lavazza, a world leader in the coffee market, has taken yet another key step in its growth strategy in India. Following its acquisition of Barista Coffee Company Limited and Fresh & Honest Café Limited in 2007, Lavazza has laid the foundation stone for its new production plant in India that will be built in the industrial district of Sri City, in Tada region in the state of Andhra Pradesh. The complex will permit modular coverage of the growing demand for coffee on the Indian market and in the Asia-Pacific region. The project was presented to the Indian press by Mr. Giuseppe Lavazza, Vice President and Mr. Marco Lavazza, Development & Acquisitions Manager of the Lavazza Group, who illustrated the company’s development strategies and examined the history of success that has accompanied the company over the last 115 years.
Dr. J Geeta Reddy, Minister for Major Industries, Sugar, Commerce & Export Promotion, Government of Andhra Pradesh, present at the event, welcomed the investment by Lavazza and congratulated the family on the new plant being setup in Andhra Pradesh.
Mr. R Shivashankar, Director South Asia for Lavazza described the commercial activities that Lavazza is planning to conduct in India over the next few years. The occasion was graced by the presence of Italian Ambassador to India, His Excellency Giacomo Sanfelice di Monteforte and Mr. Sam Bobb, Principal Secretary, Government of Andhra Pradesh.
Mr. Giuseppe Lavazza, Vice President of the Lavazza Group said, “Building a new hi-tech, high-capacity production facility in India to guarantee excellent standards of quality means committing ourselves to continue the concrete efforts made in this country for the last four years. Our intention and dream is to make India our second largest market of reference following Italy. And, I have no doubt that this ambitious objective will become reality by combining the know-how, history and values of our company with the excellent professional skills we have found here in India and, of course, by offering consumers the authentic Italian espresso experience, which we expect to become a way of life and a passion for a significant sector of the Asian population. I would like to add that, in terms of procurement, as much as possible the plant will use the excellent local material that is available, which also offers good value for money”.
Speaking about the India strategy, Mr. Marco Lavazza, Development and Acquisitions Manager of the Lavazza Group said, “Our presence in India will be long-term, and is aimed towards broader internationalization of our Group and the objective of being the leader in the espresso coffee sector.”
“The plant will be constructed with the highest building standards and guaranteed by quality certifications with a clear focus on innovation, environment and quality of life in the workplace”, he added.
The industrial complex, comprising of five buildings, will be situated in an area of approximately 40,000 square metres and will house over 150 employees. The investment — worth close to €20 million – is part of the development plans that have distinguished Lavazza in recent years, i.e. promoting internationalisation through a careful policy of investments and acquisitions. Modular growth is envisaged for what will be the hub of the entire Asia-Pacific region; production will initially cover the Indian market and will subsequently be extended to other Asian markets. Lavazza’s intent is to rely on top local professionals and bolster “zero-kilometre” production in order to minimise shipping costs and therefore the environmental impact of the product.
Mr. Sam Bobb, Government Official, Andhra Pradesh said, “Today, the state of Andhra Pradesh is in the forefront of industrialization in the country and we are happy to note that Lavazza is setting up their manufacturing plant at Sri City. This is indeed a proud moment for us and the government extends its complete support for the establishment of the facility.”
Mr. R. Shivashankar, Director South Asia, Lavazza said, “Construction of this production plant represents a great opportunity for Lavazza to bring its qualitative assets to these areas. The company will transfer all of its expertise in the production of high-quality coffee to the Sri City complex”.
The investment is expected to consolidate Lavazza’s presence in India which entered the country through its acquisition of Barista — the second-largest chain of coffee shops in the country, with around 200 points of sale — and the Fresh & Honest Café company, a leader in the Hotels, Restaurants and Catering (Ho.Re.Ca.) sector, with traditional machines using beans and the Lavazza Blue capsule systems.
LUIGI LAVAZZA S.p.A.
Established in 1895, the company has been owned by the Lavazza family for four generations. Lavazza is one of the leading roasters in the world, a leader in Italy with a 48% share of the retail market in value (source: Nielsen). It operates in over ninety countries through eleven subsidiaries. The company employs approximately 4000 people, operates globally in the Home and Away-From-Home sectors and forecasts a turnover of €1,1 million in 2010. Lavazza has 20 years of tradition in the production and marketing of systems and products for the portioned coffee segment.
The Board of Directors of Luigi Lavazza S.p.A. is composed of Alberto Lavazza, President; Giuseppe Lavazza, Vice President and Marketing Manager; Francesca Lavazza, Corporate Image Manager; Marco Lavazza, Development & Acquisitions Manager; Antonella Lavazza, Coffee Shop Business Project Manager; Gaetano Mele, CEO; Alessandro Lorenzi, Corporate Central Manager; Tullio Toledo.
ABOUT SRI CITY
Evolving on the border of Andhra Pradesh and Tamil Nadu in India, Sri City SEZ is spread over 5000 acres and offers a hassle-free operational environment in the free trade zone and robust infrastructure of an industrial park. Sri City also has the advantage of a Domestic Tariff Zone offering easy access to supplier networks; a distinct advantage of well-established connectivity by rail, and road with proximity to three seaports and two airports. Sri City Special Economic Zone is the largest private sector multi-product SEZ in South India, and this exclusive free trade zone in India is designed to benchmark with the best export zones and industrial parks across the globe.
