Sunday, January 14, 2007

Starbucks will form JV with Pantaloon

Business Standard reports that after the Indian government put its proposal under the scanner, Starbucks has tied up with Pantaloon and VP Sharma, head of its Indonesian franchise to enter the Indian market. The Seattle based company will now form a venture with Sharma, president and director of PT Mitra Adiperkasa, Indonesia and Kishore Biyani, managing director of Pantaloon Retail India.
According to estimates, entry into India would enable Starbucks to triple its stores to 40,000 worldwide by expanding into emerging markets. It will have to compete with the established local chains such as Barista Coffee and Cafe Coffee Day. “It’s a status symbol to have a Starbucks cup in your hand in countries such as China. I think that’ll translate to India as well,’’ said Rick Drake, director of research at ABN Amro Asset Management in Chicago. “More Indians are working in these professional jobs that give them more disposable income.’’ he said

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