Starbucks to set up cafes in India via JV with Tata Global

New Delhi, Jan 30 (PTI) US-based coffee chain Starbucks will set up cafes in India through an equal joint venture with Tata Global Beverages. In a filing to the Bombay Stock Exchange, Tata Global Beverages said it has signed a joint venture agreement with Starbucks, which sets forth the vision of developing the business in India. Each party will hold 50 per cent of the JV. "The company has entered into a joint venture with Starbucks group whereby, the newly formed joint venture company Tata Starbucks Ltd shall engage in the operation of Starbucks Cafes," it said. The filing did not provide more details. Earlier this month Tata Coffee Managing Director Hameed Huq had said that the first Starbucks outlet will come up by the end of this year. Starbucks already has a deal with the Tata Coffee to source coffee for its global operations. In a separate filling, Tata Coffee Ltd said it has also entered into separate agreements with Starbucks Coffee International, Inc., USA (Starbucks) and Tata Starbucks Ltd for supplying coffees to Starbucks outlets in India and other global markets. Under the agreements, the company will use Starbucks' know-how, technology and packaging for roasting coffee produced in the company's estates which will then be sold and distributed to Starbucks Cafes to be set up by Tata Starbucks Ltd in India and Starbucks business operations overseas. According to an MoU signed last year, Tata Coffee and Starbucks had also agreed to explore the opportunities for opening coffee shops in India. The joint venture announcement comes at a time when India has just opened 100 per cent FDI in single brand retail. PTI