Tatas to retain stake in Barista

Tata Coffee said on Wednesday that it would continue with its entire 34.1 per cent stake in Barista Coffee Company whose 65.45 per cent stake was recently acquired by the Sterling group from Turner Morrison.

Both the Tatas and Sterling Group hope to bring together their experience and domain knowledge in coffee business, a Barista statement said in New Delhi.

Also read:
Siva's new brew

Sterling Group was believed to have paid Rs 30 crore (Rs 300 million) for acquiring the entire 65.45 per cent stake of Turner Morrison.

Tata Coffee, a 100 per cent subsidiary of Tata Tea, acquired 34.1 per cent stake in Barista, for Rs 26 crore (Rs 260 million).

Yogesh Samat, CEO of Barista Coffee Company, told PTI, "For us, the deal is positive. We are going to gain out of it as Sterling has allied interest."

The Chennai-based Sterling Group, promoted by non-resident Indian businessman C Sivasankaran, runs its own coffee vending machines from which it earns revenues of about Rs 50 crore (Rs 500 million).

"Ownership and management of Barista will be segregated. With the change in ownership pattern, management of the company will remain the same and the strategies will also remain the same," Samat had said.

At present, Barista, which began its coffee retailing business in 2000, has 130 retail outlets. The company is also in the process of rationalising the number of its outlets rather than expanding the joints further.