Starbucks Coffee International, the world's biggest coffee chain is finally entering India.

Starbucks' entry into India became controversial when the Foreign Investment Promotion Board rejected the previous application filed by the company's franchisee New Horizons on the grounds that it exceeded 51 per cent FDI limit.

New Horizons is co-owned by NRI businessman V P Sharma and Futures Group promoter Kishore Biyani.

Clearing speculations on its entry into India, Starbucks Coffee said on Wednesday that it will open the first story in the country the end of this year.

"We target opening the doors of our first store by the end of 2007 in either New Delhi or Mumbai," Starbucks Coffee International Corporate Communications (Asia Pacific) T May Kulthol told reporters.

The US-based coffee chain said it has been working closely with India's Ministry of Commerce and Industry to understand better the existing foreign investment regulations.

"We are looking forward to offering the finest coffee in the world, handcrafted beverages, legendary service and the unique Starbucks experience to customers in India," Kulthol said.

Starbucks has submitted a revised application to the government on April 13 to operate single -brand retail stores in India.