Mumbai, Jan 30 (IANS) Global coffee chain Starbucks will soon be making its way to India with Tata Global beverages Monday formally announcing a joint venture pact with the US-based company.
“The company has entered into a Joint Venture with Starbucks group whereby the newly- formed joint venture company Tata Starbucks Limited shall engage in the operation of Starbucks Cafes,” Tata Global Beverages said in a regulatory filing.
Both parties had announced their intent to start Starbucks-branded cafes in India last year.
“The parties have signed the joint venture agreement on Jan 30, 2012 which sets forth the vision of developing the business in India. Each party will hold 50 percent of the joint venture,” it added.
Although other details were not available at the moment, Tata Group’s executives have hinted that the first cafe could open as soon as second half of 2012.
Tata Coffee, part of the diversified group, had signed a memorandum of understanding with Starbucks in 2011 for sourcing and roasting coffee beans in the Indian firm’s Kodagu facility in Karnataka.
The entry of Starbucks which has over 16,000 stores in more than 50 countries will give competition to existing Indian coffee retail chains like Cafe Coffee Day and Barista.
Estimates put the size of the Indian organised coffee retail chain market at Rs.1,000 crore.
