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The Hindu — November 9, 2006

Tata Coffee has entered into an agreement with the Ugandan government to set up a 3,600 metric tonnes-per-annum capacity plant in that country at an investment of Rs70 crore, a top company executive said today.

The company's managing director, MH Ashraf, said here that he expects building of the plant to start after three months.

"We have signed the agreement with the Ugandan government. Now we are in discussion with people who supply equipment (of German technology type) and also the contractors," he said.

"We have to get permissions like environment and things like that. We expect them to take about three months after which we will start the work".

Ashraf said the company's total investment in the Ugandan venture is in the region of Rs 70 crore.

"We are hoping to market it (instant coffee to be produced in the proposed Ugandan plant) in EU and China. Uganda has a special relationship with these countries. As a least developed country, they (Uganda) don't have to pay taxes.... import duties. That's why we picked up Uganda," he said.