Thursday, October 05, 2006

Starbuck's aggressive strategy for India

Seeking Alpha reports that Starbucks and its local partner RPG Enterprises will be opening its stores in India in mid 2007. According to sources, Starbucks will reportedly hold a 51% stake in the venture while RPG will hold 49% and also be the master franchisee. The first stores are likely to come up in Delhi and Mumbai, with around 100 stores opening each year for the next 5 years.

The coffee culture in India has been growing at a fast pace and chains such as Barista, UK based Costa Coffee, CafĂ© Coffee Day and US based Barnie’s are all on a expansion drive and constantly adding value added products and services to their menu. Starbucks tie up with the RPG Group is likely to be very helpful due to its expertise and knowledge of the Indian market and due to its strength in the entertainment and real estate fields.

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