 "Tata, Starbucks finalise India JV, first outlet by August-Sept")
Tata Global Beverages Ltd on Monday finalised its joint venture with Starbucks group whereby, the newly formed JV company Tata Starbucks Limited will operate Starbucks cafes in India.
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The parties signed the agreement on January 30, 2012, by which each part will hold 50 percent of the JV.
“The joint venture with Starbucks is in line with Tata Global Beverages’ strategy of growing through strategic alliances in addition to organic and inorganic growth,” stated . R K Krishnakumar, Vice Chairman, Tata Global Beverages at a press conference in Mumbai at the Taj Palace. He added that India is one of the most vibrant markets in the world, adding that the first retail store under the Starbucks Tata alliance will be opened by August or September 2012.
While India will be the 58th country where the company has an outlet, the first cafes will be opened in New Delhi and Mumbai.
Starbucks had signed an initial agreement with Tata Coffee, a unit of Tata Global Beverages, in January 2011 to source and roast premium coffee beans from India. Under the agreement, Tata Coffee will also export coffee beans to Starbucks.
John Culver, president Starbucks, China and Asia Pacific, said the cafes will not only serve Starbucks coffee, but also Tata Global Beverages products like Himalyan water and co-branded tea.
Taking about the outlets in India, Krishnakumar, said the TATA Starbucks Limited joint venture would operate cafs under the Quick Service Restaurant category and that the JV will not only focus on opening outlets in Taj hotels but also airports, colleges, train stations etc.He added that the company has not set any specific target for the number of stores which would be led by individual demand.
Nasdaq-listed Starbucks serves coffee, baked products and other food items at over 17,000 retail stores in over 55 countries.
Tata Coffee on the other hand grows coffee on its own estates, processes the beans, manufactures and exports, and retails coffee with its own branding in the domestic market.