New Delhi: Amid rumors that Tata Consumer Products (TACN.NS) faces pressure in its Starbucks joint venture as city dwellers reduce spending, Tata has clarified to the exchanges that Starbucks, the coffee giant, is “not exiting India.”

“The company would like to state that the information in the said article is baseless,” the statement said.

Tata Consumer clarified a report suggesting that Starbucks plans to exit India due to high costs, poor taste, and mounting losses.

Tata Consumer runs a joint venture with Starbucks in India, known as Tata Starbucks.

Tata Starbucks currently has 460 stores across 75 cities in India.

According to the reports, Sushant Dash, the CEO of Tata Starbucks said that the company has a medium-term target of 1,000 stores by financial year 2028.

Dash also said that they opened 19 new stores and entered five new cities in the quarter gone by, even as the industry and retail saw softening overall.

Tata Starbucks has also launched experiential stores in Mumbai and New Delhi and Dash said that they will see more innovation in terms of food, beverage and store formats.

Shares of Tata Consumer Products are off the lows of the day, currently trading 0.6% higher at ₹915.