@ Hitesh…..Yes…TGBL holds 50% stake in Tata Starbucks.Basically it is a 50:50 JV.
However it is not yet profitable….due to high initial start up costs of their stores and high rentals.
However if we do a back of the hand calculation…..say avg store rentals at Rs 4 lakh/month= Rs 48 Lakh per year. Avg raw material cost at say 50 lakh/year ( considering GPM of 80% on food) and avg employee and other misc costs at Rs 5 lakh per month= Rs 60 Lakh per year.
That makes it a total cost of Rs 1.6 cr per store per year.
Against a sale of 2.5-2.6 cr year per store…..Each store can give a profit of Rs 1cr/year.
If the business is scaled upto say 300 stores in next 3-4 yrs, the bottomline can be in the range of 300cr. TGBL’s share= Rs 150 cr.
That ways we have a equivalent of Jubilant Foodworks owned by TGBL…..which is valued at 9000cr….more than whole of TGBL currently.
INTERESTING!!!!
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