May face stiff competition from domestic players.
Starbucks plans to enter Chennai, the coffee-crazy city today by launching three outlets. Experts on the new development said, to do well, Starbucks will not only have to contend with some stiff competition from traditional names such as Madras Coffee House, it will also have to jostle with the various Kumbakonam degree coffee outlets dotting the city. Added to this, it will also be vying for space with upmarket rivals Cafe Coffee Day, Costa Coffee and Gloria Jean's.
Coffee consumption in India stood at 90,000 tonnes in calendar year 2013. Of this, Tamil Nadu accounts for more than 40 percent. "Chennai is and will definitely remain the hardcore coffee market in India," said Ramesh Rajah, President of Coffee Exporters' Association of India.
Starbucks ventured into India with an equal-stake joint venture between Starbucks Coffee Company and Tata Global Beverages. It rapidly scaled up and opened 12 Starbucks stores during 2012-13 in Mumbai and New Delhi. As of July, it has 49 stores in India.