New Delhi: Coffee chain Tata Starbucks posted sales of Rs 235 crore in FY 2015-16, registering a growth of 39 per cent on account of its expansion in leading metros.
Tata Starbucks, the 50:50 JV between Tata Global Beverage Ltd (TGBL) and Seattle-based Starbucks Coffee International Inc, is also looking at selling the Tata group firm's Himalayan mineral water brand in more global markets through the outlets of its American partner.
In an an investor presentation, TGBL said the growth in Tata Starbucks' revenue was "led by good-in-store performance and expansion of number of stores".
The JV operates 84 stores in leading metros such as Delhi, Mumbai, Banagalore, Pune, Hyderabad and Chennai after opening the first store in 2012 in Mumbai.
Commenting on leveraging on relationship with Starbucks beyond the Indian market, TGBL said it is "looking for supply agreements for other international markets" of its Himalayan mineral water brand, which is now available at Starbucks outlets in Singapore.
Already, Tata Coffee has a tie up with Starbucks for international supply. TGBL has 57.48 per cent stake in Tata Coffee, which primarily is into plantation and coffee extraction business.
Moreover, "A special micro lot from Tata Coffee's Nullore estate was selected for Starbucks' most premium offering - Starbucks Reserve stores," it added.
In India, Tata Starbucks outlets uses Indian roasted coffees from Tata Coffee, for all its espressos besides premium tea Tata Tazo and Himalayan water.
In June this year, Tata Sons and Starbucks had finalised multiple new joint initiatives to expand their collaboration at a global level, apart from building the iconic American coffee chain's brand and business in India.
The initiatives include sourcing Indian coffee for the US market, introducing the Teavana brand of speciality teas in Indian stores, expanding the market of the Tata-owned mineral water brand Himalayan and skilling over 3,000 youths, the companies said....