Skip to main content

Tata Consumer Products denies reports on exit of Starbucks from India

Starbucks was responding to reports that suggested that the American company was planning to quit Indian operations due to high operating cost, mounting losses, and availability of cheaper local alternatives in the market

New Delhi: Tata Consumer Products Ltd (TCPL) on Thursday denied reports on the exit of cafe chain Starbucks from the Indian market, terming them as “baseless”.

Tata in a 50:50 joint venture with US-based Starbucks Corporation operates a cafe chain in India under the brand name of Starbucks, which is the leading cafe chain in India.

Starbucks had 457 stores across 70 cities at September-end and the company aims to take it to 1,000 by FY28.

The company’s revenue from operations was up 12 per cent to Rs 1,218.06 crore in FY24.

However, its loss for the period widened to Rs 79.97 crore from Rs 24.97 crore in FY23 due to the expansion.

Its advertising promotional expenses were up 26.8 per cent to Rs 43.20 crore and royalty was at Rs 86.15 crore, according to financial data accessed through the business intelligence platform Tofler.

Last month TCPL MD & CEO Sunil D’souza told PTI that it will focus on scaling up the Starbucks cafe chain here and is not looking at store profitability.

“With Starbucks, we are very clear that the store profitability is not an issue. And as we get to scale, we know that we can generate profits out of it,” D’souza had told PTI in the last week of November.

Starbucks was responding to reports that suggested that the American company was planning to quit Indian operations due to high operating cost, mounting losses, and availability of cheaper local alternatives in the market.

After this, the Tata group FMCG arm TCPL in a regulatory filing on Thursday said the information in the article was “baseless”.

Starbucks entered India in October 2012 through a joint venture with the Tata Group. The first Starbucks store in India was opened in the Elphinstone Building in Mumbai.

The post Tata Consumer Products denies reports on exit of Starbucks from India appeared first on India Retailing.



from India Retailing https://ift.tt/tvDBNV0
via IFTTT
Labels:

Comments

Post a Comment

Popular posts from this blog

Eagle Labs launches impirica CBD brand

ST. PETERSBURG, Fla. — Eagle Labs has launched impirica, a new brand of CBD intended to eliminate consumer fear, and increase confidence, in trying the exciting new cannabidiol category. Michael Law Although most Americans have now heard about CBD, many are very confused and concerned about product quality. This is inhibiting trial in the category and holding back conversion into sales. In fact, a 2017 study by Johns Hopkins University found that two out of three CBD products on the shelf did not contain the amount of CBD reflected on the label. Furthermore, in 2018 and 2019, the FDA sent notices to a substantial number of CBD manufacturers advising them of serious concerns about product quality or egregious medical claims. The impirica brand looks different than most CBD brands — the brand name itself connotes testing and trust, says Eagle Labs chief commercial officer Michael Law. “It doesn’t use the traditional category colors of browns and greens, and you won’t find a hemp...
70 comments
Read more

Sagar Daryani, CEO and Co-founder – Wow! Momo & Saga: From a Kiosk to a Kingdom

Sagar Daryani’s entrepreneurial odyssey from humble beginnings to pioneering success has redefined the landscape of food startups in India. Co-founding Wow! Momo, he has spearheaded the growth of the largest indigenous QSR chain in the country, crafting a remarkable saga of triumph The Genesis: A Visionary Venture Takes Root In 2008, armed with a mere Rs. 30,000 and boundless ambition, Sagar Daryani and Binod Homagai embarked on their entrepreneurial journey while still pursuing their graduation in B.Com Hons from St. Xavier’s College, Kolkata, even before their college results were out. They knew the value for money and boot-strapped to plough back profits and grow their venture. Sagar spearheaded brand expansion, brand creation, and marketing and retail operations. Grew across the city with a strong consumer focus. The early days were hard but keeping track of the money flow was even harder. Believing in the concept of ‘1 rupee saved is 5 rupees earned’, and the lessons they lear...
1 comment
Read more

Homegrown ice cream chain HOCCO to open 250 stores, eyes Rs 400 crore by FY26

Ankit Chona, Founder and Managing Director of HOCCO, delves into the company’s revenue model, growth strategies, and vision for the future… Bengaluru: HOCCO (House of Chonas Collaborative) , the Ahmedabad-based ice cream and quick-service restaurant (QSR) chain, boasts a rich legacy spanning over 70 years, with roots tracing back to pre-independence India. The Chona family has been deeply entrenched in the food industry since 1944, originally operating in undivided Pakistan. Following the Partition, Satish Chona , an engineer with British Overseas Airways Corporation, relocated from Karachi to India. After journeying through multiple cities, he ultimately settled in Ahmedabad, where he established his first QSR outlet in 1953. Three decades later, he expanded into the casual dining segment, launching a restaurant in Baroda while continuing the family’s ice cream manufacturing business. However, in 2017, the company sold its ice cream division to a South Korean firm, shifting its fo...
Post a Comment
Read more