Brewing Goodness: Chacko Purackal Thomas, MD & CEO, Tata Coffee
Chacko Purackal Thomas possesses an impressive resume that mirrors his current work. A veteran in business strategy, sales, marketing, and plantation management, Thomas holds a bachelor’s degree in computer science from University of Jodhpur and has also completed an advanced management programme at INSEAD Fontainebleau.
Prior to joining Tata Coffee as MD and CEO in August 2015, he served as the MD of Kannan Devan Hills Plantations Company in Munnar. According to his online profile, Thomas has a noteworthy record in business transformation, delivering sustainable results, and leading high-performing teams in India and Vietnam. He has extensive experience in general management, establishing distribution channels, and operating his businesses. Additionally, he has held board positions in companies located in the US, Sri Lanka and India. Under his leadership, Tata Coffee has grown into one of the largest integrated coffee companies that serves more than 40 countries.
Tata Coffee's major products including green bean, instant coffee, tea, and pepper are designed to provide consumers with a taste of the company’s excellence. The company has an annual capacity of approximately 8,000 MT of shade-grown Arabica and Robusta beans. It exports about 90 per cent of its washed Arabica as premium green bean to roasters. The company's 13 Arabica estates are certified by Starbucks C.A.F.E. Practices. Its instant coffee comes in various customised blends that cater to the preferences of its customers, brands, private labels, distributors, and large global roasters.
The company's plants, located in Theni (Tamil Nadu), Toopran (Telangana), and Vietnam, are powered by renewable energy sources, reflecting the company's commitment to sustainability. Tata Coffee’s unique instant coffee variants are packaged in a fully automated unit and delivered worldwide, including Russia, Africa, Europe, Southeast Asia and the Middle East.
Business growth
On a yearly basis, consolidated net profit of Tata Coffee surged 10.32 per cent to Rs 233.40 crore even as there was a 4.81 per cent rise in revenue from operations to Rs 2,363.50 crore over FY21.
Tata Coffee’s revenues from the instant coffee business in India and Vietnam grew nearly 9 per cent during the fourth quarter, driven by improved realisations despite lower exports from India as a result of the delay in despatches. There has also been an improved margin driven by higher proportion of specialty/ differentiated products as well as lower costs. The sales to all key markets have been robust. For the financial year FY22, revenues from instant coffee business grew 20 per cent with improved margins. The order book continues to be healthy both in India and Vietnam, the company said.
According to Thomas, the performance of instant coffee business continues to be robust. “Our plantation performance on green bean coffee and pepper during the year had also been strong, aided by improved realisations. Our subsidiary, Eight O’Clock Coffee (EOC) recorded improved performance during the quarter owing to better realisations and favourable channel mix,” he said.
In March 2022, Tata Consumer Products (TCPL) had announced the merger of all businesses of Tata Coffee with itself as part of a reorganisation plan in line with its strategic priority of unlocking synergies and efficiencies. The plantation business of Tata Coffee (TCL) demerged into TCPL’s wholly-owned arm TCPL Beverages & Foods (TBFL).
