Tata Consumer Products Ltd (TCPL) has officially rejected recent reports claiming that Starbucks is planning to exit the Indian market, calling the rumors "baseless." These reports suggested that the American coffee giant might leave India due to high operating costs, mounting losses, and the growing competition from local, cheaper alternatives. However, TCPL, which operates Starbucks in India under a 50:50 joint venture with Starbucks Corporation, clarified that the rumors are unfounded. Starbucks, which has become the leading café chain in India, currently operates 457 stores across 70 cities. The company has ambitious plans for expansion, aiming to reach 1,000 stores by FY28.

In its fiscal year 2024, TCPL reported a 12% increase in revenue from operations, which rose to ₹1,218.06 crore. Despite the growth in revenue, the company's losses widened to ₹79.97 crore from ₹24.97 crore in FY23. This increase in losses is largely attributed to the cost of expansion as Starbucks continues to open new stores across India. As part of its strategy to support this growth, the company raised its advertising and promotional expenses by 26.8% to ₹43.20 crore. Additionally, the royalty paid to Starbucks Corporation stood at ₹86.15 crore, reflecting the continuing investment in the brand's development within India.

Earlier, Sunil D’souza, the Managing Director and CEO of TCPL, had stated that Starbucks’ focus in India is not on immediate store profitability but on scaling up its operations. He emphasized that while profitability is not a primary concern for individual stores at the moment, the company is confident that as the brand grows and achieves scale, it will eventually generate significant profits. Starbucks entered India in October 2012 through its joint venture with Tata Group, opening its first store in the Elphinstone Building in Mumbai. Despite challenges, TCPL remains committed to expanding the Starbucks presence in India, believing that its long-term strategy will eventually yield profits.