Starbucks inks supply chain deal with Indian coffee heavyweight As Starbucks Corp. looks to extend its business operations into India, it has tentatively signed a non-binding supply chain deal with India's Tata Coffee Ltd. for sourcing coffee beans.

Tata Coffee is Asia's largest publicly traded grower of coffee beans and Starbucks hopes to collaborate with the coffee giant to procure and roast premium green coffee beans from the Indian company's estates. Moreover, the two companies will look for ways to develop the American coffee chain's retail outlets at Tata-owned facilities and hotels, according to Bloomberg.

Howard Schultz, the chief executive at Starbucks, said that the supply chain deal would help the company adapt its business to the world's second-most populous country. "This memorandum of understanding is the first step in our entry to India," Schultz asserted.

In the past decade, India's consumption of coffee more than doubled to 100,000 metric tons; Starbucks hopes that by entering into an agreement with an Indian company that understands the domestic market, it can more easily establish a presence in the burgeoning industry.

Furthermore, according to a statement the two companies released they will also explore jointly investing in roasting facilities for exports of India.
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