Avani Davda, CEO of Tata Starbucks, presented with the Uma Jain Award for Young Woman Achiever
Avani Davda
Good afternoon, everyone. It gives me great pleasure to welcome Avani Davda here. It is a great moment for us, to present her with the Uma Jain Award for Young Woman Achiever. Avani needs no introduction. I am sure every one of you has had a cup of Starbucks’ coffee. Avani is not just the Managing Director and CEO of Tata Starbucks — at age 33, she is also the youngest CEO in Tata Group’s history. Mallika and I know Avani personally; her son Param and our son Rahil go to the same school. We always wonder how she manages to balance her work life with her personal life. She has headed Starbucks’ largest expansion in the world and continues to move up the success ladder at Tata’s. The Rotary Club of Bombay is pleased to present the Uma Jain Award for Young Woman Achiever to Avani Davda. With a Masters degree in management, Avani has spearheaded the joint venture between the global Starbucks brand and the house of Tata with her initiative and leadership. She is a role model for women in the corporate sector.
—Rtn. Sidharth Punshi
Thank you very much; it is a privilege to be here. When Sidharth called me for something like this, I was not too sure. In my career, I could be a role model to a few people, although I don’t think so myself. In my life, I have had many female role models. At a very early stage in my career, I was blessed to be associated with a brand like Taj and the work culture is fantastic. The organisation offered a nurturing environment where I grew as an individual. I think everyone has a special association with the brand and I am fortunate to have been trained by leaders such as Renu Basu, my mentor in sales and marketing. Renu, Deepa Harris, Suma Venkatesh and Sangeeta Talwar have shouldered far more complex and greater responsibilities than me. It’s not about being humble — it’s the truth that keeps me motivated. I have a long way to go and I thank you for this encouragement.
I want to talk to you about the brand that I am trying to grow in this country. Present in 62 countries, Starbucks is an iconic global brand. My relationship with Starbucks started in 2002. For a person working in India, the brand is glamorous. But when you meet the people there, you get to understand the philosophy with which Howard runs the company. It’s truly inspiring. A lot of us look at American brands and think they lack soul. That perception changed when I met the senior leadership there. It is humanity that really connects the brand and that is why we are so proud to bring it to a country like ours.
The journey of the joint venture was a fantastic experience. The Tata’s have an amazing history of joint ventures and great partnerships. The partnership has worked because of the philosophy of the two groups, which are so similar. We found a common foundation that motivates us.
I would like to share with you a little about the 1000 people, who work with us at Tata Starbucks. They are the ones who make that perfect cup of coffee and wish you in the morning. I am here today because of them. At Starbucks we don’t call them employees — we call them partners. They work together, like a family. It’s fun to lead a company like this. And there is also a lot of commitment and responsibility, shared by my team. We are responsible for over a 1000 people. Some of them are young, pretty much like the store managers you see around the world. They have different ambitions. One of the toughest things in India is to keep these people engaged and motivated. The ethos of Starbucks is about partnership because these partners bring the Starbucks experience alive. It’s great to work in a coffee company; but it also has its share of fears. What if I am not able to meet the promises that the company makes to its customers? Besides, it is not easy to be out there and work for long hours. You need to be involved and face challenges with confidence. I understand the quality of service and standards that we have to match up to. And it is inspiring to see how these people have adapted to the requirements and serve a variety of delicious coffees. I am not a coffee master.
So it is a very humbling experience and I thoroughly enjoy it. We are young; just 18 to 20 months old in the market.
On our anniversary, we spoke to some of our customers and they are happy. They want to know if we are opening new outlets and if yes, where. They are hooked to the place because of its warmth and energy and enjoy the experience. Young college students love coming to Starbucks and ask us to open more branches. Establishing Starbucks in India won’t end with 43 stores. We have to build a long-term relationship with the customer as well.
It is exciting when Howard comes to India and says that the Indian consumer is no different when compared to a New Yorker or somebody from Beijing or Shanghai. We have a very challenging task to maintain this relationship. We should be able to grow as we establish the brand in India. So once again thank you for this honour and giving me the opportunity to share my journey with Starbucks.
Some excerpts from the Q&A session:
Q: Could you tell us something about the alliance of Starbucks and Tata. What are the challenges of the Indian market?
Avani: The reason why Starbucks decided to tie up with the Tata Group was because of the Group’s knowledge and experience. It has existed for over 150 years and shares a special relationship with Indian consumers. You need to understand the dynamics of the market and what it takes to succeed here.
The challenges faced by Starbucks are no different than those faced in China or the United States or any other market. A lot of brands are learning things the hard way here. You need to take a few risks. It’s not easy to please the Indian consumer. Starbucks is not only about coffee — it is about maintaining relationships with your customers too.
Q: How does the business model of Starbucks work?
Avani: In India, the consumers are very discerning and we don’t find a lot of people hanging around for a long time. Our philosophy is that when you come to Starbucks, it’s your place. People are allowed to be themselves in this third place. Of course, there are consumers who hang around for a longer period of time. So we gently inform them that there are other customers in queue. I think that works well and our business model is very sound and sustainable.
Q: How do you balance your personal life with work?
Avani: I mentioned my role models earlier. I was amazed when I saw these women work tirelessly for the company. These women were independent and very honest. They may not have the support that I have at home. I am a very disciplined person and I have set my expectations. Sometimes I am told that I am brutally blunt but that works for me — at work as well as at home. I have a caring mother-in-law and my own mother has also always been there for me. I am as demanding with my peers and my team as I am with myself. There are many self-motivating talks that you can give yourself. But it’s not a journey that you can manage alone. You need good people at work and at home, who support you. I had bosses who were kind and understanding. So that’s how the triangle works.
Q: The South Indians know their coffee well. How does Starbucks deal with it?
Avani: India was the first market, where the coffee was sourced locally. A lot of analysts told us that it is a sure shot way of bringing down the prices. In India we are fortunate to have Tata’s coffee expertise and they worked very closely with Starbucks to achieve that. As far as South Indians or North Indians are concerned, I think the core of Starbucks is about personalising your drink. You can have your coffee the way you want it. We did our homework and tried to match the taste of our coffee to the ones available locally. The palates are different and people need to find out what they like.
Q: Did the Indian coffee market meet your expectations?
Avani: People don’t want to order tea in a Starbucks store. We have a lot of teas but coffee is more preferred in our stores. A lot of us don’t understand coffee. Even those who are working so closely with the joint venture have a long journey when it comes to understanding coffee. When people come to our stores, it is not for the best Cappuccino or the best Caramel Macchiato. They come for the experience.
Q: In how many years do you expect to make money in India?
Avani: Starbucks has a very strong business model and the company takes calculated risks before they enter any market. I cannot share my company’s finances on a forum like this. But I would like to say that we are backed by the Tata Group and Starbucks, who have achieved success across different geographies.