Starbucks in India From October 2012

With the FDI reforms in place, the retail sector is indeed looking to become one of the hottest segments of the economy to watch out out for. The world famed Starbucks
chain has now landed on Indian shores, in a joint venture with the Tata Group which will be called Tata Starbucks Ltd.  The person heading this JV will be a top executive from the Tatas, Ms. Avani Saglani Davda, and from her perspective is just as excited as the consumers would be to have the famous coffee brand in India. The first outlet of this venture opens up in Mumbai in the Horniman Circle area, by October end. Material sourcing will be local, and so will many items on the restaurant menu, which shall perhaps strike a chord with the crowds pretty early.

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Tata Global Beverages, which is the Indian partner for Starbucks, also happens to be the owner of the ‘8 o Clock’ chain in the US. The venture starts with an estimated investment of Rs 4.21 billion ($80 million), and much more is expected to flow in the coming times. There are also 50 other locations based in various parts of the country, where these outlets are planned for opening. Speaking on the occasion, John Culver, President of Starbucks China and Asia Pacific, he mentioned that chains plans are to grow very quickly as he expects the global brand to be embraced by Indian consumers very quickly.
The government will a few weeks ago, was choked with the image that corruption and weak economic reforms are the only things they offer the Indian public, but in a whole turn around of image, they have opened up the Indian markets via FDI reforms in the aviation, retail, and broadcast industries. This would mean that global brands will now be able to find themselves a perfect playground on Indian soil, after having operations in over 57 countries around the world. Though India is known to have teas drinkers mostly, socializing over coffee is something that is getting increasing acceptance amongst the metropolitan crowd of today. Its no wonder that 2010 alone had 108,000 metric tons of coffee consumed in the country. Though there are competitors like Cafe Coffee Day, Barista and Costa Coffee, the global appeal of the brand should certainly appeal to Indian crowds.

News source: Daily Bhaskar



  1. B K Chowla says:

    Personally,speaking,It is a welcome step.
    But,does India need investment in infrastructure or coffee shops?

  2. Liju Philip says:

    We cant pick and choose investments. Every decision taken by the govt is tied to each other. We cant say we need only investments in infra and not in say (food or entertainment etc). There are many countries in the world dying for investments. The companies and their investments will go there. The only losers will be us Indians and our economy.

    Anyway, Its a private venture between Tata Beverages & Starbucks.

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