Tata Coffee has received approval from its board for a capacity expansion of its wholly-owned subsidiary in Vietnam with an investment of Rs 450 crore.
The regulatory filing by the company stated that the board has given the green light for the establishment of an additional 5,500-tonne freeze-dried coffee facility in Vietnam.
The investment for this expansion is estimated at USD 53.3 million, which is approximately Rs 450 crore. Tata Coffee plans to fund this expansion through internal accruals and bank financing.
Currently, the capacity of Tata Coffee Vietnam Company stands at around 5,000 tonnes, with about 96 per cent of the total capacity being underutilized.
The proposed additional capacity, to be implemented over the next two years, aims to meet the growing demand for freeze-dried products.
