India

Italian coffee roaster Lavazza sees India as the perfect base from which to expand its operations throughout the Asia-Pacific region, despite less-than hoped for returns from its purchase of theBarista coffee shop chain.

Lavazza is currently investing in a new coffee processing plant in Chennai which it plans to be operational by June, 2011. Lavazza stands to save import duty costs of up to 110% on coffee it produces in the Chennai plant. The company’s existing facility in Porur has a monthly production capacity of 300 metric tons of roasted coffee. The factories are the company’s first coffee processing plants outside Italy.

"It will be a huge saving for us once we start manufacturing in India," said Attilio Capuano, the company’s director for the Asia Pacific region.

Lavazza has invested heavily in the iconic Barista coffee shop chain since it purchased it in April 2007, but according to analysts the operation has yet to earn a profit for the company.