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Shares of Tata Global Beverages jumped over 6 percent in early trade Tuesday after the company signed a deal with US-based coffee chain Starbucks to open cafes in India.
Investors gave a thumbs up to the joint venture and Tata Global scrip climbed 6.17 percent to touch an early high of Rs 104 on the BSE.
Similar trend was seen at the NSE, where the stock rallied 6.17 percent to Rs 103.95.
"This is a positive news for Tata Global Beverages. Starbucks is a successful franchise and the joint venture is a win-win for Tata Global Beverages," Ashika Stock Brokers Research Head Paras Bothra said.
The US-based coffee chain Starbucks will set up cafes in India through an equal joint venture with Tata Global Beverages.
In a filing to the BSE, Tata Global Beverages said it has signed a joint venture agreement with Starbucks, which sets forth the vision of developing the business in India. Each party will hold 50 percent of the JV.
"The company has entered into a joint venture with Starbucks group whereby, the newly formed joint venture company Tata Starbucks Ltd shall engage in the operation of Starbucks Cafes," it said.
Starbucks already has a deal with the Tata Coffee to source coffee for its global operations.
In a separate filling, Tata Coffee said it has also entered into separate agreements with Starbucks Coffee International, Inc, USA (Starbucks) and Tata Starbucks for supplying the beverage to outlets in India and other global markets.
Shares of Tata Coffee were trading at Rs 869, up 0.40 percent from the previous close on the BSE.
