Tata Coffee’s board of directors on Thursday approved the capacity expansion of its Vietnam-based subsidiary with an investment of ₹450 crores.
As part of the expansion plan, the board approved the setting up of an additional 5,500 tonne freeze-dried coffee facility in Vietnam, according to Tata Coffee’s BSE filing.
The additional capacity would be created with an investment of 53.3 million USD (approx ₹450 crore). The funding will be sourced from internal accruals and bank financing, the company said in its filing on Thursday.
The current capacity of Tat Coffee’s Vietnam company is 5,000 tons. About 96 percent of the total capacity is under utilization. The additional capacity, which is proposed to be added in the next two years, is aimed at responding to growing demand for freeze-dried product, it added.
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Updated: 30 Nov 2023, 14:56 IST