The Hindu : Andhra Pradesh News : MoU for transfer of technology for coffee-making

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Friday, Jun 25, 2004

Andhra Pradesh

Andhra Pradesh

MoU for transfer of technology for coffee-making

By Our Special Correspondent

HYDERABAD, JUNE 24. Representatives of the Continental Coffee and Niro A S of Denmark have signed a Memorandum of Understanding on transfer of technology for production of freeze dried instant coffee, in the presence of the Labour Minister, G. Vinod, here on Thursday.

This type of coffee is being produced for the first time in the country, at the Continental Coffee's plant at Duggirala in Guntur district, as part of its Rs. 125-crore expansion plan. It is expected to provide employment for 75 to 100 persons. The Labour Minister told presspersons that it was the first major investment after the "people- friendly" Government took over, under the leadership of Y. S. Rajasekhara Reddy. C. Rajendra Prasad, Managing Director of Continental Coffee, said it was different from the spray dried coffee (powder and granulated types) which the company had been producing, in that it is frozen to - 50 to - 60 degrees C. The spray dried coffee is made through a heat process. India would be the third country in Asia after Japan and South Korea to make such coffee. The machinery was expected by January next year and start production in November.

He said the turnover of the 10- year- old company stood at Rs. 225 crores now including that of its London subsidiary and the net profit earned was Rs. 27 crores. The entire production is exported to Europe and Japan. Larsdrik Christensen, Project Manager, and Peter Bootsman, Area Sales Manager of Niro group and A. N. Khan of Strategic Soluble Services, were present.

A wage increase agreement was signed between the management of the ITW Signode and the company's workers union, for a hefty hike of Rs. 3,638 per month in a phased manner, also in the presence of the Labour Minister. The American company manufacturing steel strappings was represented by its Managing Director, R. V. S. Ramakrishna and the union by its president, T. S. Rama Rao.

Mr. Rama Rao, described it as a "record breaking" agreement involving a huge hike and uniquely linked to productivity, quality and safety. The agreement would be in force till December 31, 2006.

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