"Tata Coffee Board Approves Rs. 450 Crore Investment for Capacity Expansion"

In a significant development, Tata Coffee received approval from its board recently for the capacity expansion of its wholly-owned subsidiary in Vietnam, entailing a substantial investment of Rs. 450 crore. The company, in a regulatory filing, revealed that the board's nod is for the establishment of an additional 5,500-tonne freeze-dried coffee facility in Vietnam.

Tata Coffee specified that the proposed expansion would require an investment of USD 53.3 million, equivalent to approximately Rs. 450 crore. The funding for this ambitious project is slated to be derived from internal accruals and bank financing, according to the company's statement.

Currently, the existing capacity of Tata Coffee Vietnam Company stands at approximately 5,000 tonnes, with around 96% of the total capacity being underutilized. The strategic decision to add an extra 5,500-tonne freeze-dried coffee facility within the next two years aims to address the escalating demand for freeze-dried products in the market.

This expansion aligns with Tata Coffee's commitment to meeting market demands and enhancing its production capabilities to serve a growing consumer base. The infusion of funds and increased capacity underscore Tata Coffee's strategic vision for sustained growth and market leadership in the coffee industry.

BS