A report that Starbucks may leave India due to rising losses and high operating costs was denied by Tata Consumer Products. Tata Consumer Products wrote to three major Indian stock exchanges calling the report “baseless.”
The “baseless” report Starbucks may leave India, according to Rajasthan-based The Philox on December 19. The report titled “Starbucks to Exit India Due to High Costs, Bad Taste, and Mounting Losses” speculated that the popular coffee chain could close in India because price-conscious Indian consumers prefer cheaper local substitutes.
Starbucks partnered with Tata Consumer Products to enter India in 2012. Although it claimed that Starbucks drinks are “overpriced and shallow” in India, the Philox report did not quote any Tata official and stated that “no official statement has been made”.
“Despite its ambitious plans, Starbucks has struggled to turn significant profits in the Indian market,” the report said. It was published days after Starbucks India announced a delay in new store openings.
Tata Starbucks Private Limited, a joint venture between Tata Consumer Products Limited and Starbucks, reported ₹81 crore in losses and 12% revenue growth in fiscal year 2024, as reported in TCPL's annual report released in May.
Tata Consumer clarifies TCPL denied leaving India in a letter titled “Clarification on 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,” Tata Consumer Products wrote to the National Stock Exchange of India, Bombay Stock Exchange, and Calcutta Stock Exchange.