Starbucks aims to open up to 50 outlets in India by year’s end, through a joint venture with Tata Global Beverages. Starbucks hopes to capitalize on the changing lifestyle and increasing disposable income of Indians. Indians have taken to a number of global brands quite well, and it serves as a great opportunity for Starbucks brand to step in India.
Last year, India had 1,600 cafes, up from just 700 in 2007, according to Technopak Advisors, which expects India’s $170 million cafe market to grow 30 percent a year, adding up to 2,700 more outlets over the next five years.
Starbucks Corp has entered into an agreement with Tata Global Beverages to unveil its first coffee shop in India, the news reports said. Tata Global Beverages will form an equal joint venture with Seattle-based Company to run cafes and develop business in India, the reports said.
The company formed out of the equal stake joint venture named Tata Starbucks Ltd will be making an investment of Rs 400 Crore and will open 30-50 outlets in India this year.
The first retail outlets are expected to come up in Mumbai and Delhi and eventually will launch outlets in other cities as well.
The joint venture company will appoint new independent chief executive and chief financial officer along with three board representatives.
Starbucks is the premier roaster and retailer of specialty coffee in the world. It has more than 17,000 stores all over the world. Meanwhile, Tata Global Beverages is a part of the global Tata Group. It is a global beverage business and the world’s second largest tea company.