Starbucks prepares to open first store in India

Exterior view of a Starbucks Coffee shop in Mountain View, Calif., is shown on Jan. 3, 2012. Starbucks announced it is raising some prices regionally as it faces rising ingredient costs. The Seattle coffee chain is raising prices about 1 percent in the Northeast and Sunbelt regions. Starbucks wouldn't disclose all of the states its raising prices, but the regions include New York; Washington, D.C.; and most Southern states. They exclude California and Florida. AP Photo/Paul Sakuma

(AP) MUMBAI, India - Starbucks (SBUX) will open its first outlet in India by the end of October in an upscale neighborhood of Mumbai and has appointed a chief executive to head its India joint venture, the company said Friday.

The store will be in Mumbai's Horniman Circle neighborhood, which boasts an Hermes store and a stately neighborhood park. It will feature coffee sourced locally, through an arrangement with Tata Coffee Ltd.

Starbucks is operating in India through a 50-50 joint venture with Tata Global Beverages, called Tata Starbucks Ltd.

Avani Saglani Davda, who has worked for the Tata Group for over a decade, will be chief executive. Most recently, she served in the vice chairman's office of Tata Global Beverages, where she was responsible for marketing and business development and helped forge the Starbucks partnership.

The joint venture said in January that it aimed to open 50 Starbucks outlets in India by year's end.

While that ambitious goal won't be achieved, the store opening is a tangible vote of confidence in India's beleaguered economy. New Delhi has been fighting to open its retailing market to foreign players, over loud populist protests, in a bid to boost growth and boost its reputation among skeptical foreign investors. Wal-Mart and IKEA have also said they intend to open retail outlets in India soon.

Comments

CBSN Live

pop-out
Live Video

Market Data

Watch CBSN Live

Watch CBS News anytime, anywhere with the new 24/7 digital news network. Stream CBSN live or on demand for FREE on your TV, computer, tablet, or smartphone.

Market News

Stock Watchlist