Ambani
Ambani ventured into the coffee industry to compete with Starbucks
Ambani ventured into the coffee industry to compete with Starbucks: The first ‘Pret a Manger’ store opened in Mumbai, and the company plans to open 100 outlets in India within the next five years.
In an effort to compete with the Starbucks operated by the Tata Group, billionaire Mukesh Ambani’s Reliance Brands unveiled its first “Pret a Manger” sandwich and coffee shop on Friday, April 21. Mukesh Ambani has now introduced the British sandwich and coffee chain “Pret a Manger” to India. Pret a Manger’s first location in India has opened at Maker Maxity in Mumbai’s Bandra Kurla Complex (BKC).
In partnership with the British sandwich and coffee chain, Reliance Brands Limited, a division of Reliance Retail, intends to open a total of 10 “Pret a Manger” stores in India this year. A franchisee partnership between Reliance Brands and the British chain had been announced the previous year.
In the next five years, the company plans to open 100 stores in India.
Darshan Mehta, MD of Reliance Brands, stated that the company is thrilled to open its first Pret a Manger store in India. Mehta stated last year that the brand would concentrate on airports in India. According to the agreement, approximately 100 ‘Pret a Manger’ stores will open in India over the next five years.
Starbucks operates 275 locations in 30 cities.
Tata Starbucks is currently the largest player in the coffee industry, with 275 locations in 30 cities. Tata Consumer Products and the American coffee chain Starbucks have formed a 50:50 joint venture. In FY22, Starbucks opened 50 new stores in India, the most in a single year for the company.
Starbucks is going to be a serious rival.
Tata Starbucks will likely face significant competition from Reliance Brands’ “pret a manager,” according to Avneesh Roy, executive director of Nuwama Institutional Equities. The introduction of “Pret a Manger” may jeopardise Starbucks’ high prices.
What did Pret a Manger’s CEO say?
Pret a Manger’s CEO, Pano Christou, stated that entering India has long been a goal of the company and that the opening of the first location in Mumbai marks a significant turning point in the company’s strategy for global growth. In order to provide Indian consumers with better options, he said, “We are working closely with the RBL (Reliance Brands) team. Additionally, we will incorporate regional culinary preferences and customs into the Pret brand.
Over the years, a number of coffee chains and brands have arrived in India.
Numerous coffee chains and brands have opened stores in India in recent years. In August 2022, the Tim Hortons coffee and bakery chain from Canada opened two locations in Delhi-NCR. The company now plans to open a total of 120 stores in India over the next three years. The company will invest a total of Rs 240 crore in this.
By 2025, the Indian coffee market will be worth Rs 34.48 billion.
According to Naveen Gurnani, CEO of Tim Hortons India, the Indian coffee market is anticipated to surpass $4.2 billion, or Rs 34.48 thousand crore, by 2025. where 20% or so of consumption will occur outside the home
A number of private equity-funded coffee and coffee-related startups have emerged as a result of India’s D2C boom. with names like Blue Tokai, Sleepy Owl, Slay Coffee, Rage Coffee, Third Wave Coffee, Beanly, and Country Bean among them.
They offer a wide range of coffee products, including roasted coffee beans, ground coffee powder, cold coffee, pour-over coffee, hot brew bags, and Nespresso pods. Meanwhile, ready-to-use coffee decoctions have also been introduced by companies like iD.
In FY22, India consumed 10 million kg of coffee.
The culture of drinking coffee in this nation is not new. The majority of the production, however, is concentrated in the southern region of the nation. According to information from the Tea and Coffee Boards of India, India consumed approximately 10 million kilogrammes (mkg) of coffee and 1,143.61 mkg of tea in FY22.
