India's commerce and industry ministry wants more information from Starbucks Corp. on its proposal to establish a chain of coffee outlets in India. Industry secretary Ajay Dua said, "We have sought more details on the nature of the business they want to do and the nature of arrangement they want to have". He added that they have also asked the company to detail whether it wants to establish only coffee shops or whether it plans to open chain of restaurants selling food items.

He said, "Once Starbucks gives their response, and if we are satisfied, we will move the proposal to the FIPB (Foreign Investment Promotion Board) for clearance". Under Starbucks proposal to the Indian government, the company wants to establish a joint venture in India, in which it will initially have an 18% stake, which can be raised to 51% at a later stage.

Dua said that the Starbucks proposal to set up espresso coffee shops has been submitted with an Indian partner called New Horizon Retail Private Ltd.

NamNews - Wednesday 10th January 2007

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