VIETNAM March 2019
 
Tata Coffee unveils first offshore coffee production plant in Vietnam
 
India-based Tata Coffee's wholly-owned subsidiary, Tata Coffee Vietnam Company has recently unveiled its US$50 million state-of-the art freeze-dried instant coffee production plant in Binh Duong province of Vietnam. The plant will have a production capacity of 5,000 metric tonnes per year.
This marks a significant development for Tata being its 1st overseas manufacturing site. Its other 2 plants are in Theni and Toopran in India. The plant in Vietnam is expected to start production at full capacity within a couple of years, fuelled by demand from Eastern Europe, EU and East Asian market.
Sanjiv Sarin, CEO of Tata Coffee said, “Globally, consumer preferences are shifting from spray-dried coffee to agglomerate to freeze-dried coffee, which is a premium and most profitable instant coffee product with double-margins.” The global freeze-dried market, which stood at approximately 200,000 metric tonnes in 2017, has been growing at 1.8% annually over the past 5 years, and has been estimated to grow at a rate of 1.9% over the next 5 years.
Vietnam is a compelling location as it produces Robusta, the favoured variant of instant coffee. “It is also one of the few plants equipped with a pilot plant facility, which is a smaller operation apart from our main unit. This can be used to develop and create new blends for customers without having to run a larger batch in the main plant. This allows us to develop new blends much faster while maintaining the quality,” added Sanjiv.
Tata Coffee is the largest coffee plantation company in Asia. The company also owns tea estates located in Coorg, Hassan and Chickmagalur districts of Karnataka and Andhra Pradesh.
 
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