Tata Coffee, controlled by Tata Global Beverages, is looking for suitable companies in Europe to expand instant coffee business through inorganic route by the end of 2013.Tata Coffee sells instant coffee as well as roasted and raw coffee beans in India, Russia, the US, Japan and Africa countries.
The company, which owns the Eight O'Clock coffee brand in the US, is looking to improve margins by pushing faster into instant coffee.
The move is in line with the company's aim to emerge as a INR10bn ($171m) company by 2015.
Tata Coffee managing director Hameed Huq was quoted Business Standard as saying that the company has increased its instant coffee capacity by 33% to 8,500 tons with INR800m ($13.7m) at Theni in Tamil Nadu.
"We are now looking at further expansion through an acquisition, mainly in Europe, which is nearer to our customers," Huq added.
"To achieve Rs 1,000 crore turnover it is essential for us to acquire a company in Europe and we have time till 2015 to achieve this target."
At the same time, the Indian coffee giant mulls to invest INR4bn ($69m) to establish a greenfield instant coffee processing unit in Europe with a capacity of 4,500 tons.
