Starbucks went ahead with its earlier planned 50:50 JV vehicle with Tata Global Beverages to open the chain in India. The first store come sup in August 2012. The global coffee chain is apparently not confident about replicating its 1000 store China success in India without a local Partner. Tata Global has knowledge from running an earlier upmaret coffee chain with Baristas it sold back to/as Lavazza later.
With the 50:50 JV option the investment of INR $4.83 bln or $100mln bypasses the local sourcing clauses which led Ikea to change plans about entering the lucrative India market earlier this month. Luxury retail with LVMHa and global automakers like Audi BMW apart from Volkswagen and Ford continue to pursue their India investment interests having grown a definitive share of market in Luxury and small car ranges.
Cafe Coffee Day would be eager for the competition as also Dominos franchise owner Jubilanft Foods which is rolling out the Dunkin' Donuts franchise stores this year as well. McDonalds and Yum Foods/ Pizza Hut&KFC continue to strike daily success even as Dominos increases per store per person spend to INR 500 in 2011 or $25 in Mac PPP terms. Both Yum foods (from Pepsi) and Dominos roll into smaller towns in 2012 to keep growth growing at above 50% rates in a market where 30% annual revenue and profit growth is considered outstanding / mark of a successful business model
