Shares of Tata Global Beverages jumped over 6 per cent in the morning trade today after the company signed a deal with the US-based coffee chain Starbucks to open cafes in India.
Investors gave a thumbs up to the joint venture and Tata Global scrip climbed 6.17 per cent to touch an early high of Rs 104 on the BSE. A similar trend was seen on the NSE, where the stock rallied 6.17 per cent to Rs 103.95.
“This is a positive news for Tata Global Beverages. Starbucks is a successful franchise and the joint venture is a win-win for Tata Global Beverages,” Ashika Stock Brokers Research Head, Mr Paras Bothra, said.
The US-based coffee chain Starbucks will set up cafes in India through an equal joint venture with Tata Global Beverages.
In a filing to the BSE, Tata Global Beverages said it has signed a joint venture agreement with Starbucks, which sets forth the vision of developing the business in India. Each party will hold 50 per cent of the joint venture.
“The company has entered into a joint venture with Starbucks group whereby, the newly formed joint venture company Tata Starbucks Ltd, shall engage in the operation of Starbucks Cafes,” it said.
Starbucks already has a deal with Tata Coffee to source coffee for its global operations.
In a separate filling, Tata Coffee said it has also entered into separate agreements with Starbucks Coffee International, Inc, USA (Starbucks) and Tata Starbucks for supplying the beverage to outlets in India and other global markets.
Shares of Tata Coffee were trading at Rs 869, up 0.40 per cent from the previous close on the BSE.