Tata Starbucks Reaffirms Commitment to India's Key Growth Market

Tata Starbucks, a 50:50 joint venture between Starbucks Corporation (USA) and Tata Consumer Products Ltd (TCPL), has strongly refuted allegations that the coffee giant plans to exit the Indian market. Calling such claims "baseless," the company has reiterated its dedication to India, describing it as a key growth market globally.

Strong Growth Despite Challenges

In FY24, Tata Starbucks reported an operational revenue increase of 12%, reaching ₹1,218.06 crore. However, with its rapid expansion, the company’s losses widened to ₹79.97 crore from ₹24.97 crore in FY23.

Currently, Tata Starbucks operates over 470 stores in 76 cities across India. In a recent statement, the company emphasized, "Starbucks is fully committed to the Indian market."

Rising Investments

Financial data from Tofler reveals that the company’s advertising and promotional expenses rose by 26.8%, reaching ₹43.20 crore, while royalty payments stood at ₹86.15 crore. These figures reflect the brand’s focus on building visibility and long-term growth in India.

Future Focus

Despite rising expenses and operational challenges, India remains a critical market for Starbucks' global strategy. With a presence in numerous cities, the brand aims to strengthen its foothold through customer-centric initiatives and sustained investments in advertising and store expansion.