Tatas, Starbucks brew JV; to open 50 stores in 2012
PTI | 08:01 PM,Jan 30,2012Mumbai, Jan 30 (PTI) World's largest coffee chain Starbucks and India's Tata Group today announced an equal joint venture to open 50 cafes in the country in the first year of operations entailing an investment of Rs 400 crore. "The initial investment will be Rs 400 between the two partners, and as business expands we will keep moving it up,.. we are looking at opening 50 stores this year," Tata Global Beverages Vice-Chairman R K Krishnakumar told reporters at a joint press conference here. Tata Global Beverages signed a joint venture agreement with the Seattle, US-based coffee giant, which sets forth the vision of developing the business here. Each party will hold 50 per cent in the JV, Tata Starbucks Ltd. The cafes will be branded as Starbucks Coffee - A Tata Alliance, he said. "We will open the first store around August-September or even earlier. We are looking at Delhi and Mumbai as the initial focus points," Krishnakumar said. The JV follows after the two firms forged an alliance last year to source and roast coffee for the US chain. Starbucks China and Asia Pacific President John Culver said, "we look at this JV as a long-term partnership that is a win-win for both of us. The Tatas present a unique opportunity for us to have an enduring partnership. We will not only look at the hotel properties that the Tatas have but we will also look at office spaces, shopping malls, airports, railway stations, colleges and universities to open our stores." The JV announcement comes at a time when the country has just opened its doors for 100 per cent FDI in single brand retail but Starbucks maintains it always looked at having an equal partnership with the Tatas. On January 10, the Government allowed 100 per cent foreign direct investment in single brand retail, enabling Starbucks to enter India on its own. (more) PTI DS BEN RSY
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