11.4 C
New York
Monday, November 28, 2022

Buy now

spot_img

How Starbucks Is Performing In India


Starbucks has been reporting losses in India since launch even as it has expanded at a rapid pace in the world’s second-most populous nation.

Tata Starbucks Pvt., the equal joint venture of Tata Consumer Products Ltd. and Starbucks Coffee Co., added 50 stores in the last financial year, taking the total count to 268. It expanded into eight more cities in the last fiscal, and now has outlets in 26 cities.

In the 10 years since inception, the India joint venture achieved operational profit—or broke even by Ebitda—in the fiscal ended March 2022. It’s unprofitable but the losses have narrowed to Rs 95 crore in FY22. The firm had reported a loss of Rs 133.5 crore in FY21 and Rs 102.7 crore in FY20.

Revenue for the coffee chain rose 76% year-on-year to Rs 636 crore in FY21.

Tata Starbucks had an accumulated loss of Rs 572 crore, as of March 2022, and required constant capital support from both the parent firms in the last 10 years. In FY22, it saw equity infusion of Rs 172 crore.

The company recently raised its authorised capital to Rs 1,250 crore and, at its July annual general meeting, sought additional equity funding of Rs 253 crore from its shareholders to fund future expansion.





Source link

Related Articles

Stay Connected

0FansLike
3,585FollowersFollow
0SubscribersSubscribe
- Advertisement -spot_img

Latest Articles