Tata - Starbucks to invest Rs 400cr in retail JV

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Tata - Starbucks to invest Rs 400cr in retail JV

For all those waiting to grab a steaming cup of Starbucks coffee in India, the wait is finally over. The world's largest coffee retailer is finally entering the country with a 50-50 joint venture with Tata Global Beverages.

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For all those waiting to grab a steaming cup of Starbucks coffee in India, the wait is finally over. The world's largest coffee retailer is finally entering the country with a 50-50 joint venture with Tata Global Beverages .

The two companies will initially invest Rs 200 crore each in the JV to be called Tata Starbucks Ltd. The company will have three directors from each side and while the CFO has been identified, the search for CEO continues, said RK Krishnakumar Vice Chairman, Tata Global Beverages.

The first Tata Starbucks cafe to be called 'Starbucks Coffee - A Tata Alliance' is expected by Aug-Sept this year. The plan is to open 50 outlets in the initial phase. The company will first focus on launching outlets in Mumbai and Delhi and then expand fast to other cities.

"It opens up exciting business opportunities and new formats for Tata Global Beverages... We are excited about the opportunities the alliance presents to innovate in the retail space and bring new beverage experiences to more consumers in India," Krishnakumar said.

The stores will be opened in Tata owned firms like Taj Hotels as well as other locations like malls, railway stations and airports.

"Opportunity in India is very big and we will move fast to make the best of that," said John Culver, president, Starbucks China and Asia Pacific.

Starbucks currently has 17,000 cafes in 57 countries and India will be the first market where it will sell some co-branded products like premium tea. The outlets will also stock Tata products like Himalayan mineral water.

Apart from the retail joint venture, Starbucks already has a partnership with Tata Coffee to source Arabica beans from India. A separate exclusive roasting facility is also being setup to supply Starbucks in India.

Tata Global Beverages shares closed up 0.8% at Rs 97.90 on NSE on Monday.

Nachiket Kelkar
nachiket.kelkar@network18online.com