Brewing Bigger: Food Empire Pours US$37 Million into India’s Coffee Future

Image Source: Comunicaffe International

Food Empire Holdings will expand its soluble coffee presence in India with US$37 million investment at its Andhra Pradesh-based spray-dried factory. It is part of a greater strategy to consolidate its branded consumer business and further develop its vertical integration in Asia.

Expansion Blueprint

The Andhra Pradesh plant will increase its capacity by 60%, to 9,600 tonnes a year from 6,000 tonnes.

Construction starts in Q4 2025 and is due for completion by end-2027

The expansion enables Food Empire's aspiration to have ownership of the complete coffee processing chain

Strategic Expansion and Market Orientation

The investment follows four consecutive years of record revenue expansion

Southeast Asia and Vietnam specifically have been Food Empire's most rapidly expanding market

India's plant is to accompany a proposed US$80 million freeze-dried coffee factory in Vietnam, due in 2028

Brand and Business Synergy

Growth will propel the company's flagship brands like MacCoffee and CaféPHỐ

Increased output will fund consumer engagement and brand building in markets

The transition also reduces reliance on Russia, which currently generates 30% of revenues

Investor Confidence and Expectancy

Food Empire shares increased 2.15% on the announcement, at S$1.90

Analysts predict improved margins and diversified revenues in FY28–30

The firm has recently been ranked in the Fortune Southeast Asia 500

Sources: Business Times Singapore, The Edge Singapore, Comunicaffe, Minichart, Food Empire Holdings Ltd.