Tata Starbucks makes its first ever profit in India after 6 years of launch
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Tata Starbucks makes its first ever profit in India after 6 years of launch

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Saurav Bhagat
Written by Saurav Bhagat
[email protected] | Delhi | Published on: August-20-2019 01:23 PM
  • Tata Starbucks is a joint venture between the Tata Group and Starbucks in India.
  • The Joint Venture reported a net profit of Rs 29 crore for the fiscal year 2018-19.
  • This comes after 6 years of its first outlet launch in India in 2012.

Tata Starbucks, a joint venture between the Tata Group and Starbucks, the world’s largest coffee retailer, published its first profit in the country nearly six years after its launch in India.

The Joint Venture reported a net profit of Rs 29 crore for the fiscal year 2018-19, information from Tofler’s research platform showed.

It had a net loss of Rs 30 crore in the past year. The profit of the FY19, however, included an exceptional deferred tax item of Rs 75 crore, which helped the bottom line of the company. At the operational stage, the prior tax loss of the company has increased by 50% to 46 crores.

Starbucks’ Indian unit extended revenues by 30% in FY19 to 447 Rs crores, paced by the addition of fresh stores in Indian metro cities with an increased demand for quality beverages. Sales development, however, slowed in the quarter ended June to 23 percent.

Tata Global Bev­er­ages be­lieves it now has a set tem­plate for ex­pan­sion in this seg­ment and will be able to con­tinue with the mo­men­tum. Focus on driv­ing foods part of the of­fer­ing con­tin­ues to re­main strong,” said a re­cent in­vestors’ note by Ko­tak In­sti­tu­tional Equities Re­search.

Tata Starbucks added about 30 outlets in the last fiscal year, bringing the count of the shop to 157.

Starbucks, which launched its India operations in October 2012, recorded the fastest store expansion in the 48-year history of the company in the county in the first few years. But with 1,750 shops, rival Cafe Coffee Day remains the market leader in the cafe segment. 

Additionally, each Starbucks outlet was a generating a revenue of about Rs 3 crore on an average, lower than Westlife Development, running McDonald’s in eastern and western India and clocking more than Rs 4.6 crores of revenue at each outlet. In the rapid restau­rant space, Burger King too out­sold Star­bucks in FY18 af­ter en­ter­ing the coun­try four years ago.

With the recent profits, Starbucks is looking solid in the quick restaurant space and looks to double the profits with every passing year onwards.

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About the author

Saurav Bhagat

Saurav Bhagat

Saurav is inclined towards brands and brand story-telling from the past half a decade. His interest in startups has made him an immense member of the NBB Family from its very early days.
Saurav loves Chai and writes his day to day experiences on Quora too.
He believes in the power of storytelling for a Brand and also in general.
He often says- "Stories are powerful enough to build and erase empires and generations!"

09654178839 | A-73, Hackerspace, Noida sector- 2 Noida UP 201301

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