Olam, which is the world's largest supplier of Robusta green coffee, said the facility would produce and supply bulk spray-dried coffee powder, freeze-dried coffee granules and coffee extracts to the unbranded and private coffee label segment.
The company would build the facility in two phases. It aims to have production capacity of 3,700 tonnes annually annum by the first quarter of 2009, and then expand capacity to 6,500 tonnes by 2011.
The report quoted Vivek Verma, Olam's managing director for coffee, as saying that the expansion into soluble coffee manufacturing was "a one-step adjacency move" into a higher value-added activity in the coffee supply chain.