Tata Coffee up on Starbucks aroma
Shares of Tata Coffee on Monday rose by about 11% on the Bombay Stock Exchange (BSE) after US-based coffee retail giant Starbucks said it was in talks with the Indian company for a potential alliance.business Updated: Oct 10, 2011 21:12 IST
Shares of Tata Coffee on Monday rose by about 11% on the Bombay Stock Exchange (BSE) after US-based coffee retail giant Starbucks said it was in talks with the Indian company for a potential alliance. The alliance could see Starbucks open coffee stores in retail stores and hotels associated with the Tata Group.
Tata Coffee, which opened on a bullish note, jumped 10.9% to close at Rs 890 on the BSE. It zoomed by 14.8% intra-day to a high of Rs 922. The scrip closed up 10.7% at Rs 889.8 on the NSE.
“Appropriate disclosure shall be made as and when there is any further specific price sensitive information on this matter,” Tata Coffee said in a regulatory filing to the BSE. There was nothing new to a report regarding its MoU with Starbucks, beyond the disclosures made in January, it said.
Tata Coffee and Starbucks had in January entered into an agreement to supply coffee beans in India. The deal will see Starbucks unveil premium coffee stores in India where coffee consumption has more than doubled to 100,000 metric tonnes from a decade ago.
Starbucks is also said to be lobbying hard with lawmakers and US government officials to facilitate its entry into India.
India’s FDI norms will allow Starbucks to hold up to 51% stake in the JV and Tata shares may be held by more than one group firm.