Starbucks in deal with Tata to open cafes in India

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Starbucks in deal with Tata to open cafes in India

Starbucks Corp, the world's largest coffee company, signed a deal with Tata Global Beverages to open its first coffee shop in India, a year after it announced its retail foray into the country.

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Starbucks Corp, the world's largest coffee company, signed a deal with Tata Global Beverages to open its first coffee shop in India, a year after it announced its retail foray into the country.

The Seattle-based company signed a pact with Tata Global Beverages in January 2011 to buy coffee from India and open retail outlets in the country.

Tata Global Beverages, part of the salt-to-software Tata conglomerate, said it would form an equal joint venture with Starbucks to run cafes and develop business in India.

Also watch the accompanying video for Starbucks press release.

Commenting on the joint venture, RK Krishnakumar, vice chairman of Tata Global Beverages, told reporters, "Ratan Tata and Cyrus Mistry are excited about Starbucks JV. We will open first retail outlet in India around August or September."

The conglomerate giant will extend its product portfolio from coffee to various beverages. The companies have agreed to offer a premium tea product branded Tata Tazo.

Starbucks announces entry into India as its 58th country where the company will open outlets.

In a press release, the company said, "Tata Coffee Ltd has informed BSE that the Company on January 30, 2012 has entered into separate Agreements with Starbucks Coffee International, Inc., USA (Starbucks) and Tata Starbucks Limited, a 50:50 Joint Venture between Tata Global Beverages Limited and Starbucks, for roasting coffee produced in the Company's estates using Starbucks know-how and technology and packaging, sale and distribution thereof to Starbucks Cafes to be set up by Tata Starbucks Limited in India/ Starbucks business operations overseas."