Starbucks Coffee Moves to India, Closes Deal with Tata Coffee

NEW DELHI – Tata Coffee LTD. is looking to finalize a deal with Starbucks Corp. by the end of January, allowing the now-international coffee chain to finally enter into India, with the first store opening in 2012.

The deal has been in the works for over a year now, with Starbucks signing an initial agreement with Tata Coffee in January last year to source premium coffee beans from the Indian company. During these arrangements, both companies expressed interest in the possibility of opening Starbucks stores in India.

Hameed Huq, managing director of Tata Coffee told reporters Thursday that “Final formalities are being completed and we are on the verge of signing the agreement,” without elaborating any further on specific contract details.

Though traditionally drinkers of tea, there has been a recent surging interest in coffee among Indians, and the middle-class of the country is beginning to adapt to Western tastes. As the popularity of coffee shops in India increases, so does the demand for Starbucks’ belated entry into one of the company’s largest un-tapped markets.

The core deal is between Starbucks and Tata Coffee, but the new partnership would also utilize the strengths of other Tata companies. Starbucks outlets would offer their own coffees and foods, and could potentially be located in retail stores and hotels owned by or associated with Tata.

Tata Coffee plans to increase output of instant coffee in India to around 8,500 tons from about 6,600 tons by the end of this year.

Is it just me, or is Starbucks taking over the world?