Tata Coffee: Instant coffee processing at Uganda

The Economic Times - April 21, 2006
In its bid to expand horizons in the international arena, Indian conglomerate Tata Group is planning to set up an instant coffee processing plant in Uganda with an investment of $12 mn.

"The greenfield project is being taken up by Tata Africa along with another Tata Group company, Tata Coffee," Tata Africa managing director, Raman Dhawan said in Johanhesburg.

"Equity investment from the two Tata group companies will be 2 million dollars each and the rest in the form of loan from a financial institution," he added.

The overall cost of the project would be about 12 million dollars, he added.

The project, which is expected to start production in the third quarter of 2007, would process instant coffee and have an annual output capacity of 3,600 tonnes.

Currently, the two Tata Group companies are discussing on branding of the product, "including Tata Coffee or some other international name".
Dhawan said the product from the Uganda plant will be exported to markets like China, Scandanivian countries and East Europe.

With the Ugandan government identifying coffee processing as an area of importance, Dhawan said the investment there in the sector holds promise for the company.