Starbucks is finally landing in India by August after years of delay, according to the Seattle Times.
Starbucks Corp. is expanding its business to India - the fastest growing economy after China - with venture partner Tata Global Beverages, Bloomberg reported. The first store is expected to open in August. Outlets will be built in Mumbai and New Delhi this year and in 50 locations within the first 12 months, R.K. Krishna Kumar, Tata Global Vice Chairman told Bloomberg at a press conference in Mumbai.
John Culver, president of Starbucks' Asian Pacific region told the Seattle Times that they viewed India "to be a very large market for [them] over time," particularly among young people and the emerging middle class who switch from tea drinkers to coffee consumers.
But he was concerned about the underdeveloped infrastructure in the country, the Seattle Times reported. That was why they cooperated with Tata, India's largest coffee producer and exporter.
Starbucks is benefitted from the new India retail rules passed on Jan. 10, according to Bloomberg. India's government raised the ownership limit to 100 percent for foreign retailers selling a single brand.
Even though Starbucks will faces more competition opening five years later than expected, Culver told the Seattle Times they were optimistic that business in India will follow the footsteps of Starbucks in China, starting slow but growing to its largest international market.