Starbucks, Tata Global ink JV to open coffee shop in India

Starbucks Corp Tuesday said it has entered into an agreement with Tata Global Beverages to unveil its first coffee shop in India, the news reports said.

The world’s largest coffee firm entered into a tie-up with Tata Global in January last year to acquire coffee from India and also open retains outlets.

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 joint venture will own and operate cafes which will be branded Starbucks Coffee-A Tata alliance, the companies said in a statement. They also said, the first retail outlets will come up in Mumbai and Delhi and eventually will launch outlets in other cities as well.

RK Krishnakumar, Vice Chairman of the world’s second largest tea company said, “Ratan Tata and Cyrus Mistry are excited about Starbucks JV. We will open first retail outlet in India around August or September.” Both the companies have decided to offer a premium tea product branded Tata Tazo.

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.

From: stockmarketdigital.com