World’s largest coffee chain, Starbucks much-written about entry into Indian market seems to be again delayed as it has withdrew its application to operate single-brand retail stores in India.
Starbucks is now file a fresh application to enter Indian market as its application was rejected by the Foreign Investment Promotion Board and Commerce Ministry on account of unclear proposed equity structure for India operations.
Starbucks had selected to partner New Horizons, a company promoted by Pantaloon Group’s Kishore Biyani and Indonesian VP Sharma. However, the JV violated FDI norms as Starbucks was not an equity partner in the JV.
Earlier, Starbucks had intention of opening outlets in Delhi and Mumbai by end of 2007.
The delay would mean that existing coffee chains such as Barista and Cafe Coffee Day would gain market share as they are expanding outlets as coffee gains popularity the Indian market.
Find this article at: http://www.labnol.org/india/corporate/starbucks-postpones-plans-of-entering-india/917/
Reader Comments
When starbucks is facing some resistance in japan, and problems in other countries where they are operating including USA, is it right time to enter india when the question is there survival and maintaining present market share where they are already present. I think starbucks should focus their strategies on their existing market or they may get the effect of negativity in India also.
Written by Sameer on 05.07.08