Food Empire Holdings Limited will be investing approximately USD 80 million (including working capital) in a new freeze-dried soluble coffee manufacturing facility in Binh Dinh province, Central Vietnam. The new facility will be Food Empire's second freeze-dries soluble coffee manufacturing facility and is part of the Group's ongoing diversification strategy to grow its ingredients business. When completed, it is expected to strengthen the Group's position as one of Asia's major players in spray-dried and freeze-dried soluble coffee.
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 will begin in the first quarter of 2025 and expected to be completed by early 2028. Its 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. The investment will be funded by internal resources and bank borrowings. The Company's recent corporate actions reflect its stronger strategic focus on Asia.
In May 2024, it announced its first coffee-mix production facility in Kazakhstan, Central Asia, 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. Besides ingredients manufacturing, Food Empire's main branded consumer business include products and brands that are sold in over 60 countries worldwide.
Its brands enjoy market leadership on in core markets. In 2024, Vietnam has become the fastest growing market for the Group's branded consumer coffee business. The branded consumer business is currently supported by four manufacturing facilities in Malaysia, Vietnam, Ukraine and Russia that produce coffee mixes and other instant beverages for its various brands, as well as a snack manufacturing facility in Malaysia that produces potato crips for contract manufacturing as well as the Group's own proprietary brands.