Starbucks exits from India: Tata Consumer Products Limited has denied all the claims that American coffee brand Starbucks is going to shut down its business in India due to high operational costs and increasing losses. Tata Consumer Products, in a letter to the three major Indian stock exchanges, called these reports baseless. Starbucks joined hands with Tata Consumer Products in 2012 and started its business in India. 

Claim made in The Philox report

On December 19, a Rajasthan-based media organization, The Philox, said in a report that Starbucks may soon shut down its business in India. The news was published with the headline, 'Starbucks may leave India due to high cost, tastelessness and increasing losses.'

After this news came out, speculations started that Starbucks is going to close all its outlets in India because people in India are generally conscious of adopting local and economical options instead of expensive things. However, Philox did not quote any official statement from the company in its report. The report also said that Starbucks products are very expensive, due to which the company is facing difficulties in making profits in the Indian market.

Starbucks may delay the opening of several other new stores in India, just days after Philox's report of the company leaving India surfaced. 

The company suffered heavy losses

According to TCPL's annual report released in May this year, Tata Starbucks Pvt Ltd, a joint venture between Tata Consumer Products Ltd and US coffee chain Starbucks, saw its losses widen to Rs 81 crore and high operational costs resulted in a mere 12 per cent growth in revenue.