Amid speculation that Tata Consumer Products (TACN.NS) is under pressure in its Starbucks joint venture due to reduced spending among city dwellers, Tata has issued a clarification to the exchanges, stating that Starbucks is "not exiting India."
"The company would like to state that the information in the said article is baseless," the statement read.
Tata Consumer addressed a report claiming that Starbucks intends to leave India due to high costs, unappealing taste, and increasing losses.
Tata Starbucks Expansion and Growth Goals
Tata Consumer operates a joint venture with Starbucks in India, called Tata Starbucks.
Tata Starbucks presently operates 460 stores in 75 cities across India.
As per reports, Sushant Dash, CEO of Tata Starbucks, mentioned that the company aims to reach 1,000 stores by the financial year 2028.
Dash also mentioned that 19 new stores were opened, and the company expanded into five new cities during the last quarter, despite a general slowdown in the industry and retail sectors.
Innovation and Market Performance
Tata Starbucks has also introduced experiential stores in Mumbai and New Delhi, with Dash indicating that further innovation will be seen in food, beverages, and store formats.
Tata Consumer Products' shares have recovered from their earlier lows and are currently up by 0.6%, trading at ₹915.
Future Plans and Strategic Directions
Tata Starbucks' long-term strategy goes beyond expanding its store count. The company plans to tap into new product categories, including ready-to-drink beverages, which could diversify its offerings and cater to growing demand for convenience. Additionally, it is exploring online sales platforms to reach customers in digital spaces. The company aims to expand its footprint in tier 2 and tier 3 cities, targeting rural markets to capture a larger, underserved audience. By broadening its product portfolio and geographical presence, Tata Starbucks seeks to strengthen its position as a leading coffee brand across India, appealing to both urban and rural consumers.
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