Tatas to bring Starbucks to India

US coffee retailing giant Starbucks Coffee Company is making another strong pitch to enter India.

US coffee retailing giant Starbucks Coffee Company is making another strong pitch to enter India. In a significant step aimed at setting up coffee shops across the country,Starbucks has signed a non-binding memorandum of understanding (MoU) with Tata Coffee Limited,one of the regions leading players in the coffee business. The MoU will create avenues of collaboration between the two companies for sourcing and roasting high-quality green coffee beans in Tata Coffees Coorg facility.

In addition,Tata and Starbucks will jointly explore the development of Starbucks retail stores in associated retail outlets and hotels.

In accordance with the MoU,the two companies will collaborate on the promotion of responsible agronomy practices,including training for local farmers,technicians and agronomist to improve their coffee-growing and milling skills. Building on Tatas demonstrated commitment to community development,the two companies also will explore social projects to positively impact communities in coffee growing regions where Tata operates, the Tatas said.

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This is the second attempt by Starbucks to enter India. In 2007,the US firm put off its plan to begin opening coffee shops in India without giving any reason. The company then found it difficult in getting its application approved by the Indian government,sources said.

RK Krishnakumar,chairman of Tata Coffee,said,We welcome Starbucks to India because of both its unique experience with the store format and for its commitment to society,values that we share.

India is one of the most dynamic markets in the world with a diverse culture and tremendous potential, said Howard Schultz,chairman,president and CEO,Starbucks Coffee Company. This MoU is the first step in our entry to India. We are focused on exploring local sourcing and roasting opportunities with the thousands of coffee farmers within the Tata ecosystem. We believe India can be an important source for coffee in the domestic market and globally where Starbucks has operations.

In the areas of sourcing and roasting,Tata and Starbucks will explore procuring green coffee from Tata Coffee estates and roasting in Tata Coffees roasting facilities.