“The project is subject to the completion of all legal and other formalities. Estimated project cost is US $50 million (approximately Rs 350 crore),” the company said in a regulatory filing in BSE.
Instant coffee accounts for about 20 per cent of the global coffee consumption with freeze dried instant coffee being the most premium.
“Tata Coffee has made steady progress in growing its freeze dried instant coffee business, which is now about 20 per cent of our overall instant coffee portfolio. 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 company’s Managing Director Sanjiv Sarin.
“The company has made significant strides in moving up the coffee quality value chain by focusing on differentiation, premiumisation and customer centricity,” a statement added.