Tata dismisses reports of Starbucks exiting India as 'baseless'

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Tata Consumer Products has denied recent speculations about Starbucks exiting the Indian market, calling the reports "baseless." The clarification comes after a media report suggested that the coffee chain might shut operations in India due to "high operating costs" and "low profitability." In a letter addressed to the National Stock Exchange of India, BSE Limited, and The Calcutta Stock Exchange, Tata Consumer Products categorically dismissed the claims on Thursday.


For context, Starbucks entered India in October 2012 through a joint venture between Starbucks Coffee Company and Tata Consumer Products Limited.


The letter was titled, "Clarification on News Article Titled - Starbucks to Exit India Due to High Costs, Bad Taste, and Mounting Losses."


The statement by Tata Consumer Products read: "Dear Sir/Madam, This is with reference to the news article titled - 'Starbucks to Exit India Due to High Costs, Bad Taste, and Mounting Losses.' The Company would like to state that the information in the said article is baseless."


The letter further stated: "We request you to take the above on record and note the compliance under Regulation 30(11) of SEBI (Listing Obligations and Disclosure Requirements), 2015."


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Earlier, on December 16, 2024, Reuters reported that Tata Consumer Products "will calibrate" its plans to open Starbucks stores in the short term due to a decline in customer footfall in India, the world's most populous country.


"We will calibrate for the short term... In the near term, there will be pressure," Tata Consumer CEO Sunil D'Souza told Reuters, adding that the Tata Starbucks joint venture remains focused on achieving its 2028 goals.