HYDERABAD: The T-stir may have been too hot for some companies to handle, making it easy for neighbouring states like Tamil Nadu and Karnataka to wean away investments from Andhra Pradesh, but for a change Andhra Pradesh has succeeded in luring away Italian coffee giant Lavazza right from Tamil Nadu. 
The 1.1 billion-euro Lavazza is shifting its manufacturing facility from Chennai to Sri City SEZ at Tada in Nellore district of Andhra Pradesh. To come up at an investment of 20 million euros, the new facility will initially cater to the Indian sub-continent and is slated to be Lavazza's manufacturing hub for the entire Asia Pacific region in three years time, Giuseppe Lavazza, vice-president, Lavazza group, said here on Friday.
Talking about the reasons for the move, Lavazza said: "Apart from the lease on the Chennai facility expiring, the Tada facility is close to Chennai, where our Indian operations are headquartered. We were also impressed by the proactive approach of AP and services being offered by the SEZ.
Lavazza, which has four facilities in Italy and one in Brazil, has already acquired 40,000 sq metres for the coffee processing facility that will employ nearly 150 people and will have an initial capacity of 1,100 tonnes per annum that will be scaled up to 1,600 tpa in the third year of operations. The Chennai plant, which was set up in 2007, had a capacity of 960 tpa.
The 116-year old Italian company, which acquired Barista Coffee Company and Fresh & Honest Cafi in 2007, is also brewing plans to expand its retail presence in India.
Apart from doubling its Barista chain to 400 over the next three years, the company plans to bring its premium chain of Lavazza cafis to India this year. After opening up the first Lavazza cafi in Asia in Seoul last year, we have zeroed in on Shanghai and Delhi. We have identified three possible locations for a pilot project in Delhi and if it clicks, we will bring Lavazza cafi to other metro cities in India, Lavazza explained. To be spread over nearly 200 sq ft, the Lavazza cafi at Delhi will be targeted primarily at the affluent and upwardly mobile Indian youth in the 25-30 year old age bracket.
The company has 200 Barista Lavazza coffee shops and over 3,000 coffee vending machines across the country.
The 1.1 billion-euro Lavazza is shifting its manufacturing facility from Chennai to Sri City SEZ at Tada in Nellore district of Andhra Pradesh. To come up at an investment of 20 million euros, the new facility will initially cater to the Indian sub-continent and is slated to be Lavazza's manufacturing hub for the entire Asia Pacific region in three years time, Giuseppe Lavazza, vice-president, Lavazza group, said here on Friday.
Talking about the reasons for the move, Lavazza said: "Apart from the lease on the Chennai facility expiring, the Tada facility is close to Chennai, where our Indian operations are headquartered. We were also impressed by the proactive approach of AP and services being offered by the SEZ.
Lavazza, which has four facilities in Italy and one in Brazil, has already acquired 40,000 sq metres for the coffee processing facility that will employ nearly 150 people and will have an initial capacity of 1,100 tonnes per annum that will be scaled up to 1,600 tpa in the third year of operations. The Chennai plant, which was set up in 2007, had a capacity of 960 tpa.
The 116-year old Italian company, which acquired Barista Coffee Company and Fresh & Honest Cafi in 2007, is also brewing plans to expand its retail presence in India.
Apart from doubling its Barista chain to 400 over the next three years, the company plans to bring its premium chain of Lavazza cafis to India this year. After opening up the first Lavazza cafi in Asia in Seoul last year, we have zeroed in on Shanghai and Delhi. We have identified three possible locations for a pilot project in Delhi and if it clicks, we will bring Lavazza cafi to other metro cities in India, Lavazza explained. To be spread over nearly 200 sq ft, the Lavazza cafi at Delhi will be targeted primarily at the affluent and upwardly mobile Indian youth in the 25-30 year old age bracket.
The company has 200 Barista Lavazza coffee shops and over 3,000 coffee vending machines across the country.
