The Success of the JV – Tata Starbucks Inc. (NASDAQ:SBUX)

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By Joseph Carducci on November 4, 2014 Company

On Tuesday, Starbucks Inc. (NASDAQ:SBUX) said that their success in India had exceeded all expectations. The America-based company expressed their surprise after operating for two years in India.

Starbucks Inc. (NASDAQ:SBUX)’s venture in India, took off as a combined business, with 50-50 stake, with Tata Global Beverages Ltd. (NASDAQ:TTAZF). The first outlet of Tata Starbucks opened in October 2012, in Bombay. John Culver, the Starbucks Coffee President, said that surprisingly, the Indian customers embraced the new company with open arms. The company and brand grew in India beyond expectations. The customers are happy with the unique tastes and beverages of Tata Starbucks.

John Culver also said that the company is very happy with the progress that they made and the sales growth that they achieved in India. There are also future prospects of growth for Starbucks Inc. (NASDAQ:SBUX) in India. This is the most important thing for a business. The company claims that they have considered business in India as a long term plan; they are willing to take the opportunities that the country presents. Starbucks Inc. (NASDAQ:SBUX) will avail the chance to build and grow their brand the right way.

Mr. Culver was asked about the expansion plans for his company in India, as well as the delays in opening up new outlets in the country, considering the current success. Mr. Culver responded by saying that the company is absolutely delighted with the growth rate in India, however, he will not talk in detail about the specifics. He informed the press that India is yet, the fastest growing market of Starbucks Inc. (NASDAQ:SBUX) in the company’s history. The company is satisfied with its growth rate and is not aiming at chasing numbers.

In 2012, after launching the new company Tata Starbucks, Starbucks Inc. (NASDAQ:SBUX) had announced that they will open up 50 cafes in India. This will entail an investment of 400 crore Indian rupees. This plan was delayed. Presently, Tata Starbucks has 59 outlets in six different cities of India.

Tata Global Beverages Ltd. (NASDAQ:TTAZF) is the world’s second largest tea-making brand. Starbucks Inc. (NASDAQ:SBUX) is an international coffee brand. Both companies had started a joint venture, late 2012. Tata Starbucks was to own and operate Starbucks Inc. (NASDAQ:SBUX)’s cafes in India, where the coffee would be branded “Starbucks Coffee – A Tata Alliance”.

In another agreement between Tata Coffee and Starbucks Inc. (NASDAQ:SBUX), Tata Coffee would be roasting and supplying coffee to Tata Starbucks outlets as well as exporting roasted coffee to Starbucks Inc. (NASDAQ:SBUX). So the Indian consumers would have a full Starbucks experience, meanwhile the consumers all over the world would discover the unique flavor of the Indian coffee.

Tata Starbucks combines two culturally-rich companies, who share a passion for innovative beverages, tea and coffee. Tata Starbucks offers an expanded range of innovative beverages for its Indian customers. Starbucks Inc. (NASDAQ:SBUX) and Tata Global Beverages Ltd. (NASDAQ:TTAZF) share the same values of business ethics and commitment to their customers. Starbucks Inc. (NASDAQ:SBUX) could not have fund a better partner.