Tata Consumer Products issues clarification in a letter to three major Indian stock exchanges.
A recent report by a Delhi-based media organisation sparked rumours of Starbucks’ exit from India, citing “high operating costs” and “low profitability.” The article, released on December 17, 2024, went viral, fuelling speculations about Starbucks closing its operations in India. On December 19, 2024, in a letter addressed to the National Stock Exchange of India Limited, BSE Limited, and The Calcutta Stock Exchange Limited, Tata Consumer Products dismissed the claims as “baseless.” For the uninitiated, Tata Starbucks entered India in October 2012 as 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.”
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.
