Tata Coffee & Starbucks Sign MoU for Strategic Alliance in India

Tata Coffee & Starbucks Sign MoU for Strategic Alliance in India
~ Companies to Explore Collaboration for Sourcing and Roasting Premium Coffee Beans in India; Agreement Will Support Starbucks Future Market Entry and Operations in India ~

MUMBAI, India--(BUSINESS WIRE)--In a significant step toward market entry in India, Starbucks Coffee Company (Nasdaq: SBUX) today signed a non-binding Memorandum of Understanding (MoU) with Tata Coffee Limited, one of the region’s leading providers of premium arabica coffee beans. The MoU will create avenues of collaboration between the two companies for sourcing and roasting high-quality green coffee beans in Tata Coffee’s Coorg, India facility. In addition, Tata and Starbucks will jointly explore the development of Starbucks retail stores in associated retail outlets and hotels.

“India is one of the most dynamic markets in the world with a diverse culture and tremendous potential”
.The agreement recognizes Starbucks and Tata Coffee’s shared commitment to responsible business values. In accordance with the MoU, the two companies will collaborate on the promotion of responsible agronomy practices, including training for local farmers, technicians and agronomists to improve their coffee-growing and milling skills. Building on Tata’s demonstrated commitment to community development, the two companies also will explore social projects to positively impact communities in coffee growing regions where Tata operates.

Commenting on the announcement, R K Krishnakumar, Chairman of Tata Coffee, said, “We welcome Starbucks entry into India because of both its unique experience with the store format and for its commitment to society, values that we share.”

“India is one of the most dynamic markets in the world with a diverse culture and tremendous potential,” said Howard Schultz, Chairman, President and CEO, Starbucks Coffee Company. “This MoU is the first step in our entry to India. We are focused on exploring local sourcing and roasting opportunities with the thousands of coffee farmers within the Tata ecosystem. We believe India can be an important source for coffee in the domestic market, as well as across the many regions globally where Starbucks has operations.”

Tata Coffee, with its large arabica coffee production base spread over different growing districts of South India, has supplied premium coffee beans for Starbucks in the past and is now building a structure for a long-term relationship.

In the areas of sourcing and roasting, Tata Coffee and Starbucks will explore procuring green coffee from Tata Coffee estates and roasting in Tata Coffee’s existing roasting facilities. At a later phase, both Tata Coffee and Starbucks will consider jointly investing in additional facilities and roasting green coffee for export to other markets.

Tata Coffee has rich expertise in the bean-to-cup value chain, with an unyielding focus on quality. It has won global accolades for its premium coffees. Over the years, Tata Coffee has further strengthened its arabica coffee production base by producing premium specialty coffee. The company has an internationally certified (ISO:22000) Roast & Ground unit at Kushalnagar in the Coorg district of India, and is a dedicated supplier to cafes across the country and specialty roasters across the globe. Tata Coffee has rapidly transformed itself by adding to its portfolio through acquisitions, becoming a more vertically integrated business.

Starbucks Coffee Company is the premier roaster and retailer of specialty coffee in the world, headquartered in the United States, in Seattle, Washington. The company manages over 16,000 stores and operates in more than 50 countries. Starbucks sells a wide variety of coffee and tea products with a range of complementary food items, primarily through retail stores. Starbucks has a long association with India. For the last seven years, the company has been ethically sourcing coffee beans from India and contributing to several social programs in the country. Starbucks believes in doing business responsibly to earn the trust and respect of its customers, partners and neighbors.

About Starbucks

Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting the highest-quality arabica coffee in the world. Today, with stores around the globe, the company is the premier roaster and retailer of specialty coffee in the world. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup. To share in the experience, please visit us in our stores or online at www.starbucks.com.

About Tata Coffee

Tata Coffee is Asia’s largest coffee plantation company and the 3rd largest exporter of instant coffee in the country. The Company produces more than 10,000 MT of shade grown Arabica and Robusta coffees at its 19 estates in South India and its two Instant Coffee manufacturing facilities have a combined installed capacity of 6000 metric tonnes. It exports green coffee to countries in Europe, Asia, Middle East and North America. In 2006, Tata Coffee acquired Eight 'O Clock Coffee Co., a segment leader in the US coffee retail market for US$ 220 million.

Tata Coffee’s other areas of business include tea, pepper, timber and hospitality in the form of ‘Plantation Trails’ – which recreates the plantation lifestyle of yesteryears. Tata Coffee’s farms are triple certified: Utz, Rainforest Alliance and SA8000 reinforcing its commitment to the people and the environment.

World Bank estimates 3.3% GDP growth this year

The global economy in 2011 and 2012 is shifting into a phase of slower but solid growth, with India and China contributing towards almost half of the global growth, says the World Bank’s latest Global Economic Prospects 2011 report.

The World Bank estimates that the global GDP, which expanded by 3.9 per cent in 2010, will slow down to 3.3 per cent in 2011 before reaching 3.6 per cent in 2012.

Developing countries are expected to grow by seven per cent in 2010, six per cent in 2011 and 6.1 per cent in 2012. They will continue to outstrip the growth in high-income countries which will expand by 2.8 per cent in 2010, 2.4 per cent in 2011 and 2.7 per cent in 2012, the report said.

Besides, steered by India, the South Asian region is projected to post 7.9 per cent GDP growth on average over the 2011-2012 fiscal years. The Indian economy is projected to grow at 8.5 per cent in 2011 and 8.7 per cent in 2012, according to the report.

iGate buys 63% stake in Patni Computers for $1.2 b

US-based iGate has acquired nearly 63 per cent stake in the country’s sixth largest IT firm Patni Computer Systems for $1.22 billion.

iGate will buy 45.6 per cent stake of the company’s three founders — Narendra Patni, Gajendra Patni and Ashok Patni — along with 17.4 per cent stake of private equity firm General Atlantic, the iGate CEO, Mr Phaneesh Murthy, told reporters here.

The transaction is valued at about $1.22 billion, including the mandatory 20 per cent open offer to be made to the public shareholders of Patni, he added.

The deal is expected to be completed in the first half of 2011 after acquiring all the regulatory approvals.

Meanwhile, the shares of Patni Computers were trading at about Rs 466.80, up 1.46 per cent on the Bombay Stock Exchange. — PTI

From where do IPL franchises get revenues?

IPL Chairman Lalit Modi clarified how franchisees can earn profit in IPL. Team owners get 80% of broadcast revenues, 60% of sponsorship revenues, 100% of team sponsorship revenues, 80% of ticket revenues, 87.5% of all merchandising revenues, and 100% of all hospitality revenues.

IPL Advertisement tariff Rs 4 lakh to 5 lakh / 10 seconds. (It was Rs 2 lakh to 3 lakh / 10 seconds in 2008). Sony has said to be earned above of Rs 400 crore this year as advertisement revenue which was about Rs. 275 crore last year.

Most franchises break even in 2 yrs some make profit in 1st yr itself..

Goldman Sach invests in Facebook

Goldman –Facebook news
• Goldman invests 450 mn in Facebook on its own balancesheet+1.5 bn investor money in fb, 50mn russias digital sky technologies
• Goldman reserves the right to do whatever it wants with its own investment n not b transparent with its clients abt the same
• valuation of company GS is 88bn and it will charge fees of 4.5-5% to its clients for their investments
• The deal makes Facebook now worth more than companies like eBay, Yahoo and Time Warner.
• The new money will give Facebook more firepower to steal away valuable employees, develop new products and possibly pursue acquisitions – all without being a publicly traded company.
• Y it doesn’t want to go public-quartely reports, annual meetings n other mandatory disclosures…6 yr old –very young co..generally private firms take 10-15 yrs before they go public..mark zuckerberg is jus 26yrs
• Linkedin may go public this yr…ceo and board of directors r open to it..depends on their willingness and experience to handle it…
• Controversy- Valuation of Facebook at 50bn (2bn revenue, 2000 employees- founded in 2004). This was done atleast one to 2 months ago before goldman came into picture. But goldman validated it. (FB valuation was 10bn in 2009 and its users have doubled in 1 yr…should its valuation quintuple?)
• Advertising rev growth-very strong
• Reasons y one may not buy FB
1. Facebook reached 500 million users in July. There's been no update since, even though the company had meticulously documented every new 50 million users to that point. Might the curve have crested? And let's not even talk about the fact that they don't really make much money per user — a few dollars a year at most. (Its estimated $2 billion in 2010 revenues would amount to $4 per user at that base.) I certainly haven't spent any money on the site, despite being a fairly regular visitor. And any advertiser who is trying to target me on the social network is wasting their money. But that's just me.
2. goldman self interest in validating valuation
3. games cannot sustain ad banners
4. revenues in 2010 jus 2 bn…paying 25 times of it is too high..other numbers not given out
5. warren buffet's opinion-calling it like another boom, rather invest in more than half of gs thn in fb

REf: http://finance.fortune.cnn.com/2011/01/04/five-reasons-why-im-not-buying-facebook/