- After launching operations in the country nearly seven years ago, Tata Starbucks, a joint venture between the Tata Group and Starbucks, crossed Rs 500 Crore revenue mark.
- The Indian subsidiary of the world’s largest coffee retailer increased its revenue by 21 percent for fiscal 2019-20. With revenues of Rs 447 crore in FY19, this translates into annual sales of about Rs 541 crore, led by the introduction of new outlets
After launching operations in the country nearly seven years ago, Tata Starbucks, a joint venture between the Tata Group and Starbucks, crossed Rs 500 Crore revenue mark.
The Indian subsidiary of the world’s largest coffee retailer increased its revenue by 21 percent for fiscal 2019-20. With revenues of Rs 447 crore in FY19, this translates into annual sales of about Rs 541 crore, led by the introduction of new outlets as demand for quality beverages in Indian metro cities increased.
However, sales growth has been slowing steadily last year. “The stores had to be closed after the lockdown was announced that had an effect on Q4 revenues. About 40 stores have so far opened for delivery and takeaway in Mumbai, Delhi NCR, Bengaluru, Chennai, Pune, Kolkata and Surat,” the company said in a presentation to investors.
Starbucks, which began operations in India in October 2012, reported the fastest growth of the company’s 48-year existence in the country ‘s initial few years. Tata Starbucks opened about 39 stores in the last fiscal year, bringing the store count to 185. “The opening of new shops was put on hold before the lock was removed,” the company said.
Last month, due to the Covid-19 lockout, Tata Starbucks had written to landlords from its 185 outlets across India requesting a rent waiver for the next three months. To maintain profitability, high property costs in India make it necessary for retailers to generate higher average price realization per square foot of room.
The Joint Venture posted a net profit for the 2018-19 fiscal year from Rs 29 crore, details from Tofler ‘s research platform shows.
It’s had a net loss in the past year of Rs 30 crore. However, the income from the FY19 contained an outstanding deferred tax element of Rs 75 crore, which improved the firm’s bottom line. The company’s preceding tax loss has risen at the operating stage by 50 percent to 46 crores.
