Food Empire to invest US$37 million to expand soluble coffee manufacturing facility in India
The move will increase the facility's capacity by around 60 per cent and support the growth of Food Empire's branded consumer business, the group said on Wednesday (Jul 9).
Sudeep Nair, group chief executive officer and executive director of Food Empire, said that the performance of its fast-growing branded consumer business has driven four consecutive years of record revenue growth for the company.
'This has given us the confidence to expand our ingredients manufacturing business, which will not only position us strongly as a leading player in soluble coffee in Asia, but more importantly it will serve as a vital link to support the growth of our branded consumer business as we continue to invest in brand-building activities across our markets,' he said.
The expansion comes under Food Empire's ongoing vertical integration initiatives to enhance control of its entire coffee processing cycle, and will sustain the leading position of its brands across its markets, the group said.
Construction works are set to commence in the fourth quarter of 2025 and will complete by end-2027.
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The company views Asia as a strategic growth region, with its South-east Asia segment having climbed to become the largest contributor to its revenue for the first quarter ended March 2025.
The South-east Asia segment's growth was mainly due to strong sales of branded consumer products in Vietnam, which has emerged as Food Empire's fastest-growing market in recent years as a result of the success of its brand-building activities.
Revenue from Vietnam surged 44.6 per cent in Q1 2025 on an enhanced sales force, effective marketing promotions and campaigns, and interactive consumer engagement activities that reinforced brand loyalty and boosted new customer acquisition.
The group in September 2024 announced plans to establish an US$80 million freeze-dried soluble coffee manufacturing facility in Binh Dinh, Vietnam, which is set to complete by 2028.
Shares of Food Empire finished Wednesday 2.2 per cent or S$0.04 higher at S$1.90
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