Investment bankers hint at Ratan Tata’s half-brother, who spearheaded the group’s retail ventures, taking on this role.
The buzz is getting louder over Noel Tata, half-brother of Tata Group chairman Ratan Tata, heading the landmark joint venture between the Group and Starbucks.
The JV is to pave the way for the iconic Starbucks cafes to dot India. It is expected to be formally announced in a press conference in Mumbai on Monday, a year after Starbucks signed a sourcing agreement with Tata Coffee, a Tata Group company and one of Tata Global Beverages’ many brands. Tata Coffee’s head office is in this city.
Investment bankers in the know indicated Noel Tata would spearhead the alliance. He has been involved in establishing and expanding Tata Group’s various retail ventures, including Star Bazaar, Westside, Infiniti Retail, which runs the Croma chain of stores, and Landmark. Currently, he is managing director of Tata International, with two main business lines, leather and engineering, including automobile distribution in Africa.
A Tata Global Beverages (TGB) spokesperson said the company does not, as a policy, comment on market speculation. “We are moving ahead with MoU (memorandum of understanding) discussions and will provide an update on Monday. This collaboration with Starbucks is in line with the growth strategy of TGB and we are very excited about the opportunity it presents,” the statement added.
The MoU between Seattle– headquartered Starbucks and Tata Coffee last January was for sourcing and roasting green coffee beans at the latter’s facility in Coorg. In that agreement, both sides had said they’d explore development of Starbucks’ retail stores at outlets and hotels.
Howard Schultz, chairman, president & CEO of Starbucks when the deal was signed, had said: “India is one of the most dynamic markets in the world, with a diverse culture and tremendous potential. This MoU is the first step in our entry into India. We are focused on exploring local sourcing and roasting opportunities with the thousands of coffee farmers within the Tata ecosystem. We believe India can be an important source of coffee in the domestic market, as well as across the many regions globally where Starbucks has operations.”
Starbucks, as and when they start to roll out cafes in India, will be up against Cafe Coffee Day, India's largest chain in this segment and owned by Bangalore-based entrepreneur V G Siddhartha. Coffee Day has around 1,200 cafes. Barista and Costa Coffee are other major players.
