Starbucks India made its second bid for the Indian market last week partnering Tata Coffee under an agreement that showcases Tata’s backend capability. Arun Bhardwaj, vice president - emerging business, Starbucks Coffee Company, said in an e-mail interview to Rakesh Khar that the company was committed to India and has been engaged in dialogue for some time with potential India partners. Excerpts:

What made you choose Tata Coffee as a partner?

We’re pleased to have found the right partner for Starbucks in Tata Coffee. We firmly believe Tatas share many of Starbucks’ values for conducting business in a way that is responsible and earns the trust and respect of our customers and neighbours. Tatas are, of course, a leading Indian group with a proven track record in delivering quality and value to customers.

Starbucks has been keen to enter India but its earlier plans did not come through? What held you back so far?

From our perspective, we came to the conclusion that the market conditions were not ideal for entry. We believe the time now is ideal for us to consider entering this vibrant, growing market.

You earlier ran into a policy hurdle regarding FIPB clearance. Do you see any regulatory hurdles yet?

It is unfortunate that we had to withdraw our application in 2007, but we are optimistic that we will be able to open the doors to our first store in India in the future. Starbucks is working closely with the ministry of commerce and industry and other governmental agencies to provide information that is needed by the government to make a well-informed decision about Starbucks’ entry into one of the fastest-growing markets in the world. We respect the Indian government’s decision-making process and are fully cooperating with the appropriate agencies.

What is the rollout timeframe now?

Starbucks is excited about the great opportunities the Indian market presents and we believe we can deliver a unique, value-based experience to Indian consumers. We are committed to the market and we have, for some time, been engaged in conversation with a range of potential Indian partner companies. However, it is too early to comment on a definitive timeline.

Do you see the MOU leading up to an equity joint venture with Tata Coffee? What is the equity break-up going to be?

Right now, we are reviewing all of our options and evaluating how we would proceed to enter one of the fastest-growing economies in the world. It would be premature for us to talk specifics.

What kind of investments are you proposing in the venture?

As company policy, we do not provide specific financial information by markets.

In terms of branding, how would you brand your stores in India?

We are in the early stages of entering this market, and it would be premature for us to talk specifics.

Sourcing of material is said to be a key element of your story in India.

Starbucks has been committed to ethically sourcing and responsibly growing coffee in India for many years -- directly from growers or through the help of importers. Through the partnership, 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.