Business | Retail
Tata Global surges with Starbucks venture
Tata Global Beverages Ltd. climbed the most in more than 4 1/2 years in Mumbai trading
- Bloomberg
- Published: 00:00 February 1, 2012
Mumbai: Tata Global Beverages Ltd. climbed the most in more than 4 1/2 years in Mumbai trading after announcing a joint venture with Starbucks Corp, the world's largest coffee-shop chain.
Tata Global surged 10 per cent, the stock's biggest jump since April 2007, to Rs107.75 (Dh7.86) at the close in Mumbai. The stock was the biggest gainer yesterday on the BSE100 Index.
The equal venture Tata Starbucks Ltd will open outlets in Mumbai and New Delhi this year, beginning August and will have 50 stores within the first 12 months, Tata Global vice-chairman R.K. Krishna Kumar said on Monday.
Following the West
The partners plan to capitalise on the rising coffee consumption in the world's fastest-growing major economy after China.
"The venture will bene-fit from changing spending patterns here, as Indian consumers are looking to adopt the ways of the developed economies," said Sreekanth P.V.S., an analyst at Angel Broking Ltd in Mumbai.
The Indian stores will build on the world's largest coffeeshop chain's expansion outside the US, where stores are less profitable than those in the Asia-Pacific region. Starbucks will compete with Barista Coffee Co, a unit of Italy's Lavazza SpA, and Cafe Coffee Day, run by Amalgamated Bean Coffee Trading Co.
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