FINANCE IV

FINANCIAL PERFORMANCE
Tata Starbucks Private Limited, also popularly known as Starbucks, is an unlisted private
company incorporated on 30 September, 2011. It is classified as a private limited company and is
located in Mumbai, Maharashtra. Its authorized share capital is INR 1,000.00 crore and the total
paid-up capital is INR 944.60 cr.

Tata Starbucks Private Limited's operating revenues range is INR 100 crore - 500 crore for the
financial year ending on 31 March, 2021. It's EBITDA has decreased by -119.65 % over the
previous year. At the same time, it's book net worth has increased by 26.29 %.

Here is a summary of financial information of TATA STARBUCKS PRIVATE LIMITED for the
financial year ending on 31 March, 2021.

Revenue / turnover of TATA STARBUCKS PRIVATE LIMITED is INR 100 crore - 500
crore
Net worth of the company has increased by 26.29 %
EBITDA of the company has decreased by -119.65 %
Total assets of the company have increased by 13.54 %
Liabilities of the company has decreased by -23.55 %

Though business achieved "high store growth, Tata Starbucks' profitability was adversely
impacted" in 2019-20 by reversal of deferred tax assets due to tax rate changes, implementation
of the new accounting standards for leases and also to some extent by the impact of lockdown.

During the financial year 2020-21, TCPL invested Rs 53 crore in the JV, taking the total
investment to Rs 288.80 crore.

PRODUCT AND SERVICES OFFERED

Tata Starbucks announced entry into six new markets as part of its expansion into smaller cities
in India. With these new additions, the company now operates 252 Starbucks stores in 26 cities.

It is entering into -- Siliguri, Nashik, Guwahati, Thiruvananthapuram, Goa and Bhubaneswar.

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Apart from the usual products offered internationally, Starbucks in India has some Indian-style
product offerings such as Tandoori Paneer Roll, Chocolate Rossendale Mousse, Malai Chom
Chom Tiramisu, Elaichi Mewa Croissant, Chicken Kathi Roll and Murg Tikka Panini to suit
Indian customers. All espressos sold in Indian outlets are made from Indian roasted coffee beans
supplied by Tata Coffee. Starbucks also sells Himalayan bottled mineral water. Free Wi-Fi is
available at all Starbucks stores.

In January 2017, Tata Starbucks introduced Starbucks' tea brand Teavana offering 18 different

varieties of tea across its outlets in India. One of the varieties, called the India Spice Majesty
Blend, was specifically developed for the Indian market and is only available in India. India
Spice Majesty Blend is a blend of full leaf Assam black tea infused with whole cinnamon,
cardamom, cloves, pepper, star anise and ginger.

On 15 June 2015, Tata Starbucks announced that it was suspending the use of ingredients that
had not been approved by the Food Safety and Standards Authority of India (FSSAI). The
company did not specify what the ingredients were or which products they were used. The
company also stated that it was in the process of applying for FSSAI approval for these
ingredients.

Tata Starbucks launched the Starbucks Delivers program in early 2019. The service offers home
delivery from Starbucks outlets through a partnership with Swiggy. The service was first
launched in Mumbai, with plans to roll it out to other cities.

GROWTH

At a time when the pandemic has forced lockdowns and store closures in the retail industry, Tata
Starbucks is set to mark its fastest expansion in India by opening 40 new stores in FY21, making it
the highest number of stores opened in a year by the cafe chain.
India, where Starbucks operates 218 outlets through a 50:50 joint venture with Tata Consumer,
continues to be one of the most rapidly-growing markets for the Seattle-headquartered company
among all its global businesses.
Despite taking a hit to its topliner due to Covid, the chain decided to go ahead with its expansion

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plans by opening new stores and launching formats such as ‘drive thru’ and ‘all-women’ outlets.
The cafe chain has no plans to reduce the size of its outlets in India. This is contrary to its largest
competitor in India, Cafe Coffee Day, which not only consolidated its number of outlets across
India but also changed several of them into convenience stores on the lines of 24Seven, which is
operated by Godfrey Philips.
Facing a management rejig with Gurney set to step down to make way for Sushant Dash, Tata
Starbucks returned to positive ebitda in December 2020.

MARKET SHARE

India has seen a growth in the consumption of coffee sold at coffee and tea chain stores including
homegrown Café Coffee Day, Barista, Starbucks and Costa Coffee. The value of this market has
grown to an estimated 25 billion Indian Rupees in 2018. Tata Starbucks dominates the industry
with a market share of 36.7%.

TATA STARBUCKS JOINT VENTURE

During the financial year 2020-21, TCPL invested ₹53 crore in the joint venture, taking the total
investment to ₹288.80 crore. Despite "strong store growth," Tata Starbucks' profitability was
harmed in 2019-20 because to the reversal of deferred tax assets due to tax rate changes, the
application of new lease accounting standards, and, to some extent, the impact of lockdown
TCPL spent a total of Rs. 53 crores in the JV for the financial year 2020-21, bringing the total
investment to Rs. 288.80 crore. Tata Starbucks, a 50:50 joint venture between Tata group firm
TCPL and Starbucks Corporation, established 39 new outlets this year, bringing the total number
of stores to 185 in 11 cities.

REFERENCES

P. (2022, January 6). Tata Starbucks enters into six new cities in India, crosses 250 store
benchmark. The Economic Times.
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https://economictimes.indiatimes.com/industry/services/retail/tata-starbucks-enters-into-six-new-
cities-in-india-crosses-250-store-benchmark/articleshow/88733818.cms?from=mdr

P. (2020, June 14). Tata Starbucks posts 21% growth in 2019–20; TCPL invests Rs 53 crore in

JV. The Economic Times. https://economictimes.indiatimes.com/markets/stocks/earnings/tata-

starbucks-posts-21-growth-in-2019-20-tcpl-invests-rs-53-crore-in-jv/articleshow/76368519.cms?

from=mdr

W. (2022b, April 14). STARBUCKS (TATA STARBUCKS PRIVATE LIMITED) - Company

Profile, Directors, Revenue & More. Tofler.

https://www.tofler.in/tata-starbucks-private-limited/company/U74900MH2011PTC222589#:

%7E:text=Tata%20Starbucks%20Private%20Limited’s%20operating,networth%20has

%20increased%20by%2026.29%20%25.

Sarkar, J. (2021, March 26). Fiscal 2021: Tata Starbucks set for fastest expansion. The Times of

India. https://timesofindia.indiatimes.com/business/india-business/fiscal-2021-tata-starbucks-set-

for-fastest-expansion/articleshow/81702620.cms

A. (2021, August 28). Starbucks Coffee Market Share In India. Food News.

https://www.foodnewsnews.com/starbucks/starbucks-coffee-market-share-in-india/

Press Trust of India, Posted by Prashasti Singh. (2020, June 14). Tata Starbucks posts 21%

growth in 2019–20; TCPL invests ₹53 crore in joint venture. Hindustan Times.

https://www.hindustantimes.com/business-news/tata-starbucks-posts-21-growth-in-2019-20-tcpl-

invests-rs-53-crore-in-joint-venture/story-tJEHEhVLxJ43ylGgzokrpN.html

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