Starbucks coffee in India by September

Starbucks Corp, the world’s largest coffee company, signed a deal with Tata Global Beverages to open its first coffee shop in India, a year after it announced its retail foray into the country.

Starbucks, the world’s largest retailer of coffee, announced a strategic, 50:50 joint venture with Tata Global Beverages, parent of Tata Coffee.

The Seattle-based company signed a pact with Tata Global Beverages in January 2011 to buy coffee from India and open retail outlets in the country.

Tata Global Beverages, part of the salt-to-software Tata conglomerate, said it would form an equal joint venture with Starbucks to run cafes and develop business in India.

Howard Schultz, Chairman, president and Chief Executive Officer, Starbucks said, “India is one of the most dynamic markets in the world with a diverse culture and tremendous potential. This will be a long term joint venture, but we will not be looking at raising stake to 100 per cent. Our desire is to leverage Tata properties for setting up cafes.”

R K Krishna Kumar, Vice Chairman, Tata Global Beverages, said that India is the only market where Starbucks is co-branding products. “There are unique features in this arrangement. Initial investment for the deal is Rs 400 crore between the two partners. Tata group is extremely excited about this venture,” he added.

It will open its first retail outlet in Mumbai, Delhi and Bangalore around August or September.