Starbucks debuts in Indian Market

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Mumbai: Starbucks, world's largest premium coffee retailers have made their way to Indian market by signing a Memorandum of Understanding (MoU) with Tata Coffee, grower and supplier of Arabica coffee beans. Tata coffee shares witnessed the day high of 17 percent (544.50) as soon as the announcement of the tie-up was made. Starbucks will set up stores in Tata group's retail outlets and hotels, besides sourcing and roasting coffee beans at Tata Coffee's Kodagu facility. Tata coffee has supplied coffee beans to Starbucks in the past.

Seattle based Starbucks, who's running 16,000 stores worldwide, has for years been eyeing the Indian market, where other U.S. food and drink giants such as Mc Donalds, Domino's and Pizza hut have already made their mark. Starbucks is aiming at opening their first outlet in the mid of this year.

Starbucks had tried to enter India by striking an alliance with Kishore Biyani's Future Group three years ago. Due to the lack of clarity on the foreign shareholding structure of the proposed Indian venture, the Foreign Investment Promotion Board rejected Starbucks proposal. FIPB is a government body that regulates inflow of foreign money into India's factories, shops and mines.

The major players in India are Barista and Cafe Coffee Day. These two chains have been thriving on rising demand from India's increasing upwardly mobile middle class and youth, for whom hanging around in a coffee shop excites them. Each of them hold a 50 percent of the market share in India.

"The deal will enhance sales and brand image for Tata Coffee," Kauspubh Pawaskar, an analyst with Mumbai-based brokerage Sharekhan says. He remarks that Starbucks entry is not threatening to the existing coffee outlets; rather intake of the beverage will grow.

Pawasker says, coffee consumption in India grows every year by almost 5 percent to 6 percent. India forecasts to produce 299,000 Tons of coffee in the fiscal year ending March. Nearly 70 percent of this is exported, and 95,000 Tons consumed locally. Coffee retailing is unorganized in India because according to industry officials this segment is dominated by around 500-600 crores unlisted companies.

[crazyhorse]

[quote author=ChittiNaidu link=topic=143483.msg1637757#msg1637757 date=1295020793]
2rs chai taste raane raadu....andulo anukuntaru janalau...baga unnolle tagedi.... sCh_elmodance2 sCh_elmodance2
[/quote] @3$% @3$% @3$% @gr33d @gr33d

[behappy]

[quote author=ChittiNaidu link=topic=143483.msg1637757#msg1637757 date=1295020793]
2rs chai taste raane raadu....andulo anukuntaru janalau...baga unnolle tagedi.... sCh_elmodance2 sCh_elmodance2
[/quote]
prices entha pedathado.... max.. balisinollake....... @3$%

[behappy]

[quote author=Vihs link=topic=143483.msg1638180#msg1638180 date=1295026720]
[b] I have been to Munnar once....while discussing the stuff with tea estate manager there ...... he revealed  some interesting facts about how industrialists exploit gove wealth.... Tata took it for  nominal lease  5 rupees per acre for 200 years.....you can imagine.....[/b]
[/quote] F@!n F@!n F@!n