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Tata in a 50:50 joint endeavor with US-based Starbucks Corporation runs a coffee shop chain in India under the trademark name of Starbucks, which is the leading coffee shop chain in India.
Starbucks had 457 shops throughout 70 cities at September- end and the firm intends to take it to 1,000 by FY28. (Representative Image)
Tata Consumer Products Ltd (TCPL) on Thursday rejected records on the departure of coffee shop chain Starbucks from the Indian market, describing them as “unwarranted”.
Tata in a 50:50 joint venture with US-based Starbucks Corporation operates a cafe chain in India under the brand name of Starbucks, which is the leading cafe chain in India.
Starbucks had 457 stores across 70 cities at September-end and the company aims to take it to 1,000 by FY28.
The company’s revenue from operations was up 12 per cent to Rs 1,218.06 crore in FY24.
However, its loss for the period widened to Rs 79.97 crore from Rs 24.97 crore in FY23 due to the expansion.
Its advertising promotional expenses were up 26.8 per cent to Rs 43.20 crore and royalty was at Rs 86.15 crore, according to financial data accessed through the business intelligence platform Tofler.
Last month, TCPL MD & CEO Sunil D’souza told PTI that it will focus on scaling up the Starbucks cafe chain here and is not looking at store profitability.
“With Starbucks, we are very clear that the store profitability is not an issue. And as we get to scale, we know that we can generate profits out of it,” D’souza had actually informed PTI in the recently of November.
Starbucks was replying to records that recommended that the American firm was preparing to give up Indian procedures as a result of high operating expense, placing losses, and schedule of less costly regional options in the marketplace.
After this, the Tata team FMCG arm TCPL in a governing declaring on Thursday claimed the info in the write-up was “unwarranted”.
Starbucks entered India in October 2012 through a joint venture with the Tata Group. The first Starbucks store in India was opened in the Elphinstone Building in Mumbai.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – PTI)
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