Tata and Starbucks Brew News: Denying Exit Rumors with Expansion Plans

Tata Consumer Products Ltd denied rumors of Starbucks exiting India, affirming its joint venture with Starbucks Corporation. Despite widened losses and higher marketing expenses, the cafe chain aims for expansion from 457 to 1,000 outlets by FY28. The focus remains on scaling rather than immediate profitability.

Tata Consumer Products Ltd (TCPL) on Thursday refuted reports suggesting the exit of Starbucks from the Indian market, labeling them as baseless.

The company has a 50:50 joint venture with Starbucks Corporation, operating under the Starbucks brand, a leading cafe chain in India. As of September, Starbucks managed 457 stores across 70 cities, with plans to expand to 1,000 outlets by FY28.

The financial year 2024 saw a 12% increase in operating revenue to Rs 1,218.06 crore. However, losses widened to Rs 79.97 crore, attributed to expansion efforts. Advertising expenses increased by 26.8%, while royalty payments reached Rs 86.15 crore. TCPL's CEO Sunil D'souza emphasized scaling over immediate store profitability. These statements came in response to rumors of Starbucks planning to exit due to high operational costs and local competition.

(With inputs from agencies.)