Tata Coffee on Thursday secured board approval for a capacity expansion of its wholly-owned subsidiary in Vietnam, involving an investment of INR 450 crore.
The board has approved the setting up of an additional 5,500-tonne freeze-dried coffee facility in Vietnam, the company said in a regulatory filing.
Tata Coffee said the additional capacity would be created with an investment of USD 53.3 million (approximately INR 450 crore). The funds will be sourced from internal accruals and bank financing, it said.
The company said the current capacity of Tata Coffee Vietnam Company is about 5,000 tonnes. About 96 per cent of the total capacity is under utilisation. The additional capacity which is proposed to be added in next two years aims to cater to growing demand for freeze-dried product, it added.