Tata Coffee plans to set up Rs 350-crore manufacturing plant in Vietnam

Tata Coffee Ltd plans to set up a freeze dried coffee plant of 5000 metric tonne per annum (MTPA) capacity in Vietnam with an estimated investment of $ 50 million (approximately Rs 350 crores). The move is expected to further strengthen Tata Coffee's growth in the premium instant coffee segment. 

Tata Coffee already has freeze dried coffee manufacturing plant in Theni (Tamil Nadu), which develops blends customised to varied consumer preferences. Freeze dried coffee is a growing segment worldwide in the premium instant coffee segment. Instant coffee accounts for about 20 percent of the global coffee consumption with freeze dried being the most premium. The plant in Vietnam will serve discerning global customers of Tata Coffee with new product mixes of freeze dried coffee. 

“Tata Coffee has made steady progress in growing its freeze dried instant coffee business, which is now about 20 percent of our overall instant coffee portfolio. This move is in line with the company's strategy to strengthen focus on differentiation, premiumisation and customer centricity. Vietnam offers an attractive business environment besides being the largest robusta coffee growing region. The plant will help us further expand our global footprint,” said Sanjiv Sarin, managing director, Tata Coffee.

Tata Coffee's instant coffee division is India’s first export-oriented soluble coffee manufacturer. The company has three 100 per cent EOU (export oriented units) instant coffee manufacturing units at two locations, Toopran (near Hyderabad) and at Theni (near Madurai) with an installed capacity of 8500 tonnes per annum, producing spray dried and agglomerated and freeze dried instant coffee.