Starbucks revenue from India grew 27% beating slowdown, says Tata Global Beverages

• Tata Global Beverages has posted a profit of ₹94.2 crore, a 5% jump from the same quarter in the previous year.
• The jump in profits comes despite an economic slowdown in the country.
• Tata Starbucks saw a 27% growth in revenue while also opening 28 new stores in the third quarter.

Tata Global Beverages, which is the world’s second largest manufacturer of tea and also runs Starbucks, posted a marginal uptick in profits for the third quarter. Its net profit at ₹94.2 crore is 5% higher than ₹89.66 crore in the same quarter last year.

Tata Starbucks, its joint venture with the US based coffee chain posted healthy revenue growth of 27%. It also opened 28 new stores in the third quarter. Its total stores now stand at 174 across 11 cities.

TGB’s revenues went up by 5.7% to ₹954.72 crore from ₹911.58 crore in the same quarter last year. The company calls it steady growth despite the economic slowdown.

“The Company recorded steady revenue growth despite challenging macroeconomic conditions in India and some key international markets. Our new launches in India are geared towards unlocking white space opportunities through greater localization. In international markets, we have launched products aimed at revitalizing the black tea category,” said Ajoy Misra, managing director and CEO of Tata Global Beverages.

Under Tata Global Beverages umbrella, the company runs brands like Tata Tea, Tetley, Tata Coffee Grand, and Himalayan water. It also offers the energy drink Tata Gluco Plus which will now be rolled out nationwide.

TGB’s India tea business grew by 7% in volume and 6% in value terms. In Canada too, the company saw a volume growth in branded tea.

Tata Global Beverages has an approximate annual turnover of $1.4 billion, including its joint ventures. It employs over 2,000 people across all of its brands.

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