Tata Starbucks Reaffirms Commitment Amid Exit Rumors

Tata Starbucks declared its unwavering commitment to the Indian market, dismissing rumors of its exit as baseless. Despite rising losses due to expansion, the company sees India as a vital growth area, operating over 470 stores and planning further growth, focusing on scale over immediate profitability.

Tata Starbucks has firmly reiterated its commitment to the Indian market, labeling recent exit rumors as unfounded. The announcement comes amid reports suggesting Starbucks' potential withdrawal from India due to high costs and competitive local alternatives.

Despite a 12% rise in revenue for FY24, Tata Starbucks witnessed a significant increase in losses, attributed to its expansion strategy. The company currently runs over 470 stores across 76 cities, viewing India as a crucial growth region globally.

TCPL Managing Director and CEO, Sunil D'souza, emphasized that profitability at the store level is not a concern, as the focus remains on expanding scale to eventually generate profits. Starbucks entered India in 2012 via a joint venture with the Tata Group, continuing to operate successfully through this partnership.

(With inputs from agencies.)