The shares of India’s Largest Coffee and tea Manufacturer and Exporter gained around 1.5 percent of Rs 280 per share after the company approved setting up additional capacity of coffee facility in Vietnam.
On November 30, 2023. Tata Coffee Ltd’s Board of Directors has approved the set up of an additional 5,500 Metric Tonnes (MT) Freeze-Dried Coffee facility in Vietnam. For an investment of Rs 450 crore. The company reported in its exchange filing.
This facility is being undertaken by Tata Coffee Vietnam Company Ltd, a wholly-owned subsidiary of the Company. The company planned to source funds for investment purposes from internal accruals and bank financing.
The company has an existing capacity of 5,000 Metric tonnes with an existing capacity utilization of 96 percent.
Tata Coffee Ltd shares have given a return of 20 percent in the last six months and 27 percent on a year-to-date basis.
Recently, Hon’ble National Company Law Tribunals, Bengaluru and Kolkata have approved Tata Coffee Ltd to enter a Composite Scheme of Arrangement for an amalgamation with Tata Consumer Products Limited (“TCPL”) and TCPL Beverages & Foods Ltd. However, Tata Coffee Vietnam Company Limited will become a wholly-owned subsidiary of Tata Consumer Products Limited.
The company’s revenues fell by 3 percent year on year from Rs 718 crore in Q2FY23 to Rs 695 crore in Q2FY24, while net profit declined by 57 percent in the same period, from Rs 146 crore to Rs 63 crore.
Tata Coffee Ltd is primarily engaged in the production, trading, and distribution of Coffee Tea, and Allied products. The group has operations in India, USA, CIS countries, Europe, Africa and Vietnam.
It is Asia’s largest integrated coffee company, the second-largest exporter of Instant Coffee, and the foremost producer of Specialty coffee in India.
The promoter of the company is Tata Consumer Products Ltd which holds 57.48% shares of Tata Coffee Ltd.
The company owns and operates 25 estates in South India out of which 18 are coffee estates, 6 are tea estates and 1 is a mix estate is a mix of coffee and tea plantations. In total, the company has around 8,000 hectares of estates in South India.
At the time of writing this report, Tata Coffee shares were trading at Rs 277.70 per share, up 0.47 percent from the previous close price.
Written by Omkar Chitnis
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