Tata Consumer Products Ltd. dismissed reports on December 19 claiming that Starbucks is planning to exit India, calling them "completely false and baseless", Money Control reported. The FMCG company said that its partnership with Starbucks remains strong, underpinned by shared values and a commitment to India. At 10:40 am on December 19, Tata Consumer's shares were up by 0.5%, trading at Rs 914.75 each.
Tata Starbucks, the joint venture between US coffee giant Starbucks and the Indian conglomerate, operates the largest cafe chain in India, with over 450 outlets. In the last financial year, the company reported a 12% increase in sales, reaching Rs 1,218 crore, although its net loss widened to Rs 80 crore from Rs 25 crore. Revenue in the first half of this year saw only a slight increase.
According to business insights provider Tofler, Tata Starbucks' revenue more than doubled in the last financial year compared to four years ago. Tata Consumer's CEO remains optimistic about the long-term success of its coffee venture, citing the growing coffee culture in India and the relatively low cafe density compared to other Asian countries like Indonesia, Vietnam, and the Philippines, as reported by Reuters earlier this week.