Tata Consumer Products Ltd. (TCPL) aims to expand its coffee business footprint in India, announcing plans to scale up Tata Starbucks outlets to 1,000 by FY2027-28. The announcement underscores the company’s optimism about growth opportunities in the Indian coffee market.
Currently operating 457 stores across 70 cities as of the September quarter, the joint venture (JV) between TCPL and Starbucks Corporation is eyeing significant expansion, despite plans for moderate short-term store openings.
“We see a huge opportunity in the coffee business in India,” said Sunil D’Souza, MD & CEO of TCPL. “Starbucks has already established itself as the largest coffee chain in the country, but the market remains significantly under-penetrated compared to similar economies. Our intent to reach 1,000 outlets by FY28 remains firm.”
The company is also focusing on its vending business, Tata MyBistro, which caters primarily to institutional customers with a range of coffee, tea, and other beverages.
D’Souza emphasized the profitability of the Starbucks business model, noting that as the JV scales, profitability is expected to grow. “The store profitability is not an issue, and we are confident of generating sustainable profits as we expand,” he added.
This long-term target aligns with TCPL’s broader strategy to capitalize on India’s evolving coffee culture while tapping into the growing demand for premium beverage experiences.