The Hindu : Business : Tata Coffee eyes Ugandan market

Online edition of India's National Newspaper
Wednesday, Apr 13, 2005

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Business

Tata Coffee eyes Ugandan market

By Our Staff Reporter

BANGALORE, APRIL 12. Tata Coffee is exploring the possibility of setting up an instant coffee facility in Uganda.

Speaking to media persons here on Tuesday, M. H. Ashraf, Managing Director, said a team visited Africa in March to analyse the ideal factors for investment, and good labour facilities. Discussions were held with the Ugandan Ministry and officials of the Ugandan Coffee Development Authority. "If the environment was conducive, Tata Coffee will set up a 3,000 tonne capacity project by investing Rs. 25 crores," he said.

As Uganda has no big country status, investors there could get concessions such as duty free coffee import by other countries. Value additions of the product proposed would help benefit the project, he said. With growing coffee consumption in China, Ugandan coffee is now being sold in China, especially for the young Chinese. About 4,900 tonnes of instant coffee were exported all over the world, including Russia last year. This year they are looking at a 20 per cent increase.

With Vietnam posing a potential threat to Indian coffee, the company is also looking at establishing its presence there. Organic coffee being a niche market, the company is looking at exporting mostly to America and some parts of Europe.

The turnover of the company was Rs. 180 crores during 2003-04 and is expected to cross Rs. 500 crores in the next five years.

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