Guwahati: Tata Starbucks Ltd reported a 76% increase in sales to Rs 636 crore for 2021-22, as well as a "much" lower net loss, due to normalisation of operations following the lifting of COVID-related limitations.

According to Tata Consumer Products Ltd's most recent annual report, the revenue increase was driven by greater realisation from existing shops and the addition of new stores during the fiscal year ended March 31, 2022. (TCPL).

"Revenue from Operations increased by 76% to Rs 636 crores, and net loss decreased dramatically," TCPL stated in a statement about the success of the JV. It "experienced a robust comeback after re-opening following the second wave of the pandemic" and increased its shop expansions this year, building 50 new locations, the most in a single year so far.

The firm presently has 268 outlets in 26 cities.

Tata Starbucks, founded in 2012, is a 50:50 joint venture between Starbucks Corporation and Tata Group's FMCG subsidiary, Tata Consumer Products Ltd. (TCPL).

"The Company has invested Rs 86 crore in equity capital for the fiscal year 2021-22," TCPL noted. "As COVID limitations loosened during the year, the company enjoyed a strong sequential rebound in sales and opened 50 new outlets in eight new locations. The new stores include a mix of landmark store openings, such as the Golden Temple complex in Amritsar, Jio World Drive in Mumbai's Bandra Kurla Complex, and the Brahmaputra Riverfront in Guwahati, as well as smaller footprint outlets "it added.

Furthermore, the member base of the reward programme My Starbucks Rewards increased by 21% last year. It has about 1.1 million clients that are faithful to it.

"The company was able to achieve breakeven at the operating profit level before depreciation and amortization (EBITDA)," it stated.

As COVID limitations lifted throughout the year, Tata Starbucks saw a strong sequential improvement in sales, with the shop operating index reaching 95% by March, the company said.

The business claimed it also noticed an increase in average daily transactions on its distribution channel with the limitations, and the levels stabilised higher compared to pre-COVID even after the restrictions were loosened.