The board of Tata Coffee has given its approval for the expansion of capacity at its subsidiary, Tata Coffee Vietnam Company Ltd, in Vietnam. The company is set to invest Rs 450 crore in establishing an additional 5,500 Metric Tonnes (MT) freeze-dried coffee facility. This expansion comes on top of the existing capacity of 5,000 metric tonnes.
According to a filing with the Securities and Exchange Board of India (SEBI), the decision was made during a board meeting held on November 30, 2023. Tata Coffee highlighted that this expansion project is undertaken by its wholly-owned subsidiary, Tata Coffee Vietnam Company Ltd.
The investment of USD 53.3 million (approximately Rs 450 crore) for this additional capacity will be financed through a combination of internal accruals and bank financing. Currently, about 96 percent of the total capacity is underutilized, and the company aims to complete the proposed expansion within the next two years.
