Food Empire Holdings has announced its plans to invest US$80 million ($104.2 million) in a new freeze-dried soluble coffee manufacturing facility in Vietnam.
The facility, located in Binh Dinh province, marks the group’s second manufacturing facility for freeze-dried soluble coffee.
According to the group, the investment is part of its ongoing diversification strategy to grow its ingredients business. Under its ingredients business, the group currently operates two facilities in India that manufacture spray-dried and freeze-dried soluble coffee, as well as a non-dairy creamer manufacturing facility in Malaysia.
Construction of the new facility is set to begin in the first quarter of 2025. The facility is expected to be completed by early 2028.
The group adds that the location in Vietnam is “strategic” as the country is one of the world’s largest producers of Robusta coffee beans.
The new facility will have a larger capacity than the existing freeze-dried soluble coffee manufacturing facility in India.
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The investment comes on the back of the group’s strategic focus on Asia. In May, the group announced its first coffee-mix production facility in Kazakhstan to be opened by the end of 2025.
In August 2024, it established a strategic partnership with Ikhlas Capital for the purpose of expanding the Group’s Southeast Asia and South Asia business segments.
Sudeep Nair, CEO of Food Empire, says: “Growth from our Southeast Asia segment, and in particular, Vietnam, has been the highest in recent years. We believe there is tremendous potential for even more growth and that is why we are putting focus in the region.”
He adds: “The new Vietnam facility will not only enable us to continue with vertical expansion as part of our diversification strategy, but it will also open up new business opportunities within Southeast Asia.”
The investment will be funded by internal resources and bank borrowings.
Shares in Food Empire closed at 0.5 cents lower or down 0.52% at 96.5 cents on Sept 11.
