+919998510543

News Details

News Details

Hot Pursuit News
As on 30-Nov-2023  16:15

Tata Coffee board OKs Rs 450 cr investment in Vietnam subsidiary

As part of the expansion plan, the board approved the setting up of an additional 5,500 metric tonnes (MT) freeze-dried coffee facility in Vietnam. This facility is being undertaken by Tata Coffee Vietnam Company, a wholly-owned subsidiary of the company.

Tata Coffee Vietnam Company has an existing capacity of 5,000 MT freeze-dried coffee facility in Vietnam, with an existing capacity utilisation of 96%.

Through this capacity expansion, Tata Coffee aims to cater to the growing demand for the freeze dried product envisaged and saturation of existing capacity.

The company said that the additional capacity would be created with an investment of $53.3 million (approximately Rs 450 crore). The funds will be sourced from internal accruals and bank financing, it added.

The Tata Group company has set a time period of approximately 2 years for adding the proposed capacity in Vietnam.

Tata Coffee has entered into a composite scheme of arrangement with Tata Consumer Products (TCPL) and TCPL Beverages & Foods (wholly-owned subsidiary of TCPL). On the scheme becoming effective, Tata Coffee shall stand amalgamated with TCPL and hence there will be a change in ownership for Tata Coffee Vietnam Company from Tata Coffee to TCPL, subject to such approvals as may be required for this purpose. Consequently, Tata Coffee Vietnam Company will become a wholly-owned subsidiary of TCPL.

In view of this, the above proposal for the expansion of capacity in Tata Coffee Vietnam Company, is also considered and approved by the duly constituted board committee of TCPL and by the members? council of Tata Coffee Vietnam Company.

Tata Coffee is a subsidiary of Tata Consumer Products, formerly known as, Tata Global Beverages. It is Asia's largest integrated coffee Company, the second largest exporter of Instant Coffee and foremost producer of Specialty Coffee in India.

The company?s consolidated net profit tumbled 60.2% to Rs 56.70 crore on 3.1% decline in net sales to Rs 695.95 crore in Q2 FY24 over Q2 FY23.

Shares of Tata Coffee rose 0.62% to settle at Rs 277.85 on the BSE.

Powered by Capital Market - Live News