Tata Consumer Products Ltd on December 19 told CNBC-TV18 that reports of Starbucks looking to exit India are "completely false and baseless".
Tata’s relationship with Starbucks stands strong with shared values and commitment to India, the FMCG company said.
At 10:40 am on December 19, Tata Consumer shares were trading 0.5% higher at Rs 914.75 apiece.
Tata Starbucks, a joint venture between US coffee brand Starbucks and the Indian conglomerate, operates the largest cafe chain in the country with more than 450 outlets.
Sales at Tata Starbucks rose 12% to Rs 1,218 crore in the last financial year, while its net loss widened to Rs 80 crore rupees from Rs 25 crore. In the first half of this year, revenue rose only marginally.
According to business insights provider Tofler, in the last financial year Tata Starbucks revenue had more than doubled compared to four years ago.
Tata Consumer's CEO still expects its bet on coffee to pay off in the longer run as the country's coffee culture grows and with cafe density still low compared with other Asian countries such as Indonesia, Vietnam and the Philippines, Reuters reported earlier this week.
Tata Starbucks has beefed up its dedicated team to plan for store openings, keeping an eye out for upcoming real estate development and shortlisting locations ahead of time, reported Reuters.
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